Consider the following table and prepare a segmented income statement on paper. Use your income statement to answer the following questions:
What is the contribution margin for Product A?
What is the segment margin for Product A?
What is the total segment margin?
What is net income?
Product A Product B
Units sold 4300 4000
Selling price per unit $18 $24
Variable costs per unit $9 $9
Direct fixed costs per product line $1935 $3000
Allocated common fixed costs per product line $3096 $3840