segmented income statement product line analysis

Segmented Income Statements, Product-Line Analysis

Bismarck Company produces blenders and coffeemakers. During the past year, the company produced and sold 80,000 blenders and 75,000 coffeemakers. Fixed costs for Bismarck totaled $327,000, of which $92,400 can be avoided if the blenders are not produced and $145,000 can be avoided if the coffee makers are not produced. Revenue and variable cost information follow:

                                                                       Blenders                                   Coffee Makers
Variable  expenses per appliance                     $20                                                 $27
Selling price per appliance                                  24                                                   29


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