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GHI Company produces and sells two products, A and B. Selling price per...

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Accounting

GHI Company produces and sells two products, A and B.
Selling price per unit of A=$7.00
Variable expenses per unit of A=$2.00
Traceable fixed expenses per year for A=$50,000
Selling price per unit of B=$8.50
Variable expenses per unit of B=$5.00
Traceable fixed expenses per year for B=$25,000
Common fixed expenses per year =$30,000
The company produced and sold 15,000 units of A and 28,000 units of B.
Required:
A) Prepare a contribution format income statement segmented by product lines.
B) Are both product lines profitable? Which product should the company focus on promoting to increase profits?
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