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everage Depots Juice Division, has two product lines (Orange and Apple) and has the following information available for the current year:
| Sales revenueOrange | $600,000 |
| Sales revenueApple | 900,000 |
| Variable costsOrange | 340,000 |
| Variable costsApple | 260,000 |
| Direct fixed costsOrange | 75,000 |
| Direct fixed costsApple | 62,500 |
| Allocated fixed costsOrange | 50,000 |
| Allocated fixed costsApple | 75,000 |
| Unallocated common fixed costs | 125,000 |
The product income for Apple is:
Select one:
A. $502,500
B. $577,500
C. $640,000
D. $335,000
Answer & Explanation
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