Exhibit 7-4
the Following Segmented Annual Income Statement Is for Paper

question 19

Multiple Choice

Exhibit 7-4
The following segmented annual income statement is for Paper Products,Inc.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Product Lines }$
$\begin{array}{lrrrr}& \text { Plain } & \text { Lined } & \text { Color } & \text { Total }\\\text { Sales revenue } & \$ 25,000 & \$ 100,000 & \$ 125,000 & \$ 250,000 \\\text { Variable costs } & 15,000 & 50,000 & 85,000 & 150,000\\\text { Contribution margin } & \$ 10,000 & \$ 50,000 & \$ 40,000 & \$ 100,000 \\\text { Direct fixed costs } & 4,000 & 6,000 & 9,000 & 19,000\\\text {Allocated fixed costs }&\underline{\quad?\quad}&\underline{\quad?\quad}&\underline{\quad?\quad}&\underline{45,000}\\\text {Profit (loss) }&\underline{\$\quad?\quad}&\underline{\$\quad?\quad}&\underline{\$\quad?\quad}&\underline{\$\quad?\quad}\end{array}$

-Refer to Exhibit 7-4.If allocated fixed costs are based on sales revenue for each product line as a proportion of total sales revenue,what is the total profit or (loss) for all product lines?

• A)$250,000
• B)$164,000
• C)$126,000
• D)$36,000
• E)None of the answer choices is correct.

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Definitions:

Experimental Group

The group in a scientific study that receives the intervention or treatment under investigation.

Independent Variable

In an experimental setting, the variable that is manipulated or changed to observe its effect on the dependent variable.

TV Violence

The depiction of violent acts on television programming, which may influence viewer perceptions and behavior.

Violent Behaviour

Actions that involve force or the threat of force to harm others.