Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: TE Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 O B. Restorative $340,000; Power $169,125 OC. Restorative $1,852,000; Power $817,500 O D. Restorative $388,000; Power $231,125 O E. Restorative $680,000; Power $494,500

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 29E: Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima....
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Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations:
Restorative
Power
Unit Sales Price
$180
$95
Variable Cost Percentage
70%
65%
Traceable Fixed Costs
$260,000
$118,000
During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales.
Based on the above data, on which amounts should the performance of the two product lines be judged?
O A. Restorative $1,252,000; Power $530,375
B. Restorative $340,000; Power $169,125
C. Restorative $1,852,000; Power $817,500
D. Restorative $388,000; Power $231,125
E. Restorative $680,000; Power $494,500
Transcribed Image Text:Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product lines: Restorative and Power. The following information relates to its first year of operations: Restorative Power Unit Sales Price $180 $95 Variable Cost Percentage 70% 65% Traceable Fixed Costs $260,000 $118,000 During the year, 12,000 units of Restorative and 10,500 units of Power were sold. Total common fixed costs of $90,000 were allocated to the product lines based on their respective percentage of total unit sales. Based on the above data, on which amounts should the performance of the two product lines be judged? O A. Restorative $1,252,000; Power $530,375 B. Restorative $340,000; Power $169,125 C. Restorative $1,852,000; Power $817,500 D. Restorative $388,000; Power $231,125 E. Restorative $680,000; Power $494,500
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