Grater Inc sells product A and product B. Revenue and cost information relating to the products follow: Product A Product B Selling Price per unit $48.00 $65.00 Variable expenses per unit $24.50 $29.20 Traceable fixed expenses per year $144,000 $101,500 Common fixed expenses in the company total $390,000 annually. Last year the company produced and sold 10,000 of Product A and 15,000 of Product B.
Prepare a contribution format income statement for the year segmented by product lines. Show details clearly.
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