Reference no: EM132237694

Segmented Income Statements, Product-Line Analysis Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and $142,500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follows: Blenders Coffee Makers Selling price per appliance $24 $29 Variable expenses per appliance 18 27 Required: 1. Prepare segmented income statements. Separate direct and common fixed costs. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total Sales $ $ $ $ $ $ $ $ $ $ 2. What would the effect be on Alard’s profit if the coffee maker line is dropped? The blender line? If the coffee maker line is dropped, profits will by $, the segment margin. If the blender line is dropped, profits will by $. 3. What would the effect be on firm profits if an additional 10,000 blenders could be produced (using existing capacity) and sold for $21.50 on a special-order basis? Existing sales would be unaffected by the special order. Enter all amounts as positive numbers. Alard Company Segmented Income Statement Blenders Coffee Makers Total $ $ $ Contribution margin $ $ $ Segment margin $ $ $ $