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HELP!!!! Managerial Word Problem

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

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Christopher B. | Tutor & Coach - Accounting / Career DevelopmentTutor & Coach - Accounting / Career Deve...
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Contribution Margin (Product A) = (Units sold x Selling Price) - (Variable Cost per unit x units sold)
Segment Margin (Product A) = Contribution Margin (Product A)  - (Direct Fixed Costs)
Total Segment Margin = Segment Margin Product A + Segment Margin Product B
Net Income = Total Segment Margin - Total Allocated Fixed Costs