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A company has two product lines, shoes and hats. Costand revenue for each line for the current month follows:
Product lines
Shoes hats
sales...................................... $ 800,000 $450,000
variable costs as a percentage ossales........ 55% 28%
fixed costs traceable to productlines......... $200,000 $ 250,000
The company incurs monthly fixed costs of $ 100,000 common to both product lines. Prepare the company's responsibilty income statement for the current month. Report the repsonsiblity margin for each product line and income from operations for the company as a whole, including all dollars amounts as percentage of sales.
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