Answer:
Standard model = ($442,621)
Galaxy model = $1,163,871
Explanation:
According to the question for computing of product line profits/loss for the Standard model and the Galaxy model first we need to find out the total direct labor of Kima and after that the percentage of standard share and Galaxy share is shown below:-
Total direct labor of Kima = Direct labor of Standard Model + Direct labor of Galaxy Model
= $1,650,000 + $505,000
= $2,155,000
Percentage of Standard share = $1,650,000 ÷ $2,155,000
= 76.57%
Percentage of Galaxy share = $505,000 ÷ $2,155,000
= 23.43%
Particulars Standard model Galaxy model
Sales revenue $6,050,000 $2,750,000
Less: Direct material ($2,450,000) ($350,000)
Less: Direct labor ($1,650,000) ($505,000)
Contribution $1,950,000 $1,895,000
Less: Overheads ($2,392,621) ($732,129)
($3,124,750 × 76.57%) ($3,124,750 × 23.43%)
Profit or Loss ($442,621) $1,163,871
