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Beverage Depot's Juice Division, Has Two Product Lines (Orange and Apple)

Question 52

Multiple Choice

Beverage Depot's Juice Division, has two product lines (Orange and Apple) and has the following information available for the current year:
 Juice Division  Sales revenue-Orange $600,000 Sales revenue-Apple 900,000 Variable costs-Orange 340,000 Variable costs-Apple 260,000 Direct fixed costs-Orange 75,000 Direct fixed costs-Apple 62,500 Allocated fixed costs-Orange 50,000 Allocated fixed costs-Apple 75,000 Unallocated common fixed costs 125,000\begin{array} {cc} \hline\quad\quad\quad\quad\quad\quad\quad\text { Juice Division } \quad\quad\quad\quad\quad\quad \\\end{array} \\\begin{array} { l r }\hline\text { Sales revenue-Orange } & \$ 600,000 \\\text { Sales revenue-Apple } & 900,000 \\\text { Variable costs-Orange } & 340,000 \\\text { Variable costs-Apple } & 260,000 \\\text { Direct fixed costs-Orange } & 75,000 \\\text { Direct fixed costs-Apple } & 62,500 \\\text { Allocated fixed costs-Orange } & 50,000 \\\text { Allocated fixed costs-Apple } & 75,000 \\\text { Unallocated common fixed costs } & 125,000\end{array} The Product Income for Apple is:


A) $335,000
B) $502,500
C) $640,000
D) $577,500

Correct Answer:

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