Fellow's Manufacturing Company Produces Three Products: X, Y, and Z

Essay

Fellow's Manufacturing Company produces three products: X, Y, and Z. The income statement for this year is as follows: $\begin{array}{lr}\text { Sales } && \$ 200,000 \\\text { Less: Variable expenses } && 127,000\\\text { Contribution margin }&&\$73,000\\\text { Less fixed expenses: }\\\text { Manufacturing } & \$ 20,000 \\\text { Selling and administrative } & 14,000&34,000\\\text { Net income }&&\$39,000\end{array}$ 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.