Fellow's Manufacturing Company Produces Three Products: X,Y,and Z Required: Prepare Income Statements Segmented by Products

Essay

Fellow's Manufacturing Company produces three products: X,Y,and Z.The income statement for this year is as follows: The sales,contribution margin ratios,and direct fixed expenses for the three types of products are as follows: $\begin{array}{lrrr}&X&Y&Z\\\text { Sales } & \$ 60,000 & \$ 40,000 & \$ 100,000 \\\text { Contribution margin ratio } & 35 \% & 30 \% & 40 \% \\\text { Direct fixed expenses of products } & \$ 8,000 & \$ 5,000 & \$ 4,000\end{array}$ Required: Prepare income statements segmented by products.Include a column for the entire firm in the statement.