Reference no: EM132520579

Toy Trucks Co. has provided the following relating to the most recent month (August 31, 2016) of operations, for their two main products, toy firetrucks and toy dump trucks. The company sold 20,000 firetrucks and 10,000 dump trucks. Firetrucks sell for $25.00 and dump trucks sell for $20.00.

Other data relating to the product lines is as follows:

                                                                  Fire Trucks                     Dump Trucks

Variable Expenses as a % of Sales :       60%                                50%

Traceable Fixed Costs                           $60,000                     $50,000

In addition to the above costs, the company spent $5,000 on an advertising campaign which advertised both product lines. The company also has corporate fixed costs of $10,000 per month. These corporate fixed costs would be incurred regardless of the product lines sold.

Question 1. What is the CM ratio of the fire trucks product line?

Question 2. What is the total contribution margin (in dollars) of the dump truck product line?

Question 3. What is the segment margin (in dollars) for the fire trucks product line?

Question 4. What is the overall operating income (loss) for the company?