Sprout Company produces three products: A, B, and C. The income statement for 2017 is as follows:
$$\begin{array}{lrr}
\text { Sales } & & \$ 1,500,000 \
\text { Less variable costs } & & \underline{952,500} \
\text { Contribution margin } & & \$ 547,500 \
\text { Less fixed expenses: } & & \
\quad \text { Manufacturing } & \$ 100,000 & \
\quad \text { Selling and administrative } & \underline{70,000} &\underline{170,000} \
\text { Net income } & & \underline{\$ 377,500}
\end{array}$$ The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:
Prepare income statements segmented by products and include a column for the entire firm in the statement.

Question

Sprout Company produces three products: A, B, and C. The income statement for 2017 is as follows:
 $$\begin{array}{lrr}
\text { Sales } & & \$ 1,500,000 \
\text { Less variable costs } & & \underline{952,500} \
\text { Contribution margin } & & \$ 547,500 \
\text { Less fixed expenses: } & & \
\quad \text { Manufacturing } & \$ 100,000 & \
\quad \text { Selling and administrative } & \underline{70,000} &\underline{170,000} \
\text { Net income } & &  \underline{\$ 377,500}
\end{array}$$ The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:
  Prepare income statements segmented by products and include a column for the entire firm in the statement.

Quizplus · Accepted Answer

The Answer of Sprout Company produces three products: A, B, and C. The income statement for 2017 is as follows:
 $$\begin{array}{lrr}
\text { Sales } & & \$ 1,500,000 \
\text { Less variable costs } & & \underline{952,500} \
\text { Contribution margin } & & \$ 547,500 \
\text { Less fixed expenses: } & & \
\quad \text { Manufacturing } & \$ 100,000 & \
\quad \text { Selling and administrative } & \underline{70,000} &\underline{170,000} \
\text { Net income } & &  \underline{\$ 377,500}
\end{array}$$ The sales, contribution margin ratios, and direct fixed expenses for the three types of products are as follows:
  Prepare income statements segmented by products and include a column for the entire firm in the statement.

Sprout Company Produces Three Products: A, B, and C The Sales, Contribution Margin Ratios, and Direct Fixed Expenses for Income