Herry Company Herry Company does produce and sell two products and the details below will be used to prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs tot two products. Background information Total Prod A Prod B Beginning inventory Units produced 10,000 2,500 7,500 Units sold 8,000 2,000 6,000 Selling price per unit $255 480 180 Variable costs per unit Direct material 100 280 40 Direct labor 60 60 60 Variable overhead 25 40 20 Variable selling and admin. exp. 10 13 Fixed costs Fixed manufacturing overhead 200,000 Fixed selling and administrative 100,000 Production runs (not 100 65 35 Number of sales reps (not 25 15 10 Here are the first few lines ofthe segmented income statement to help you get started. Complete the statement in good format and make sure you allocate the fixed costst two products. When done, comment on the information and the relative profitability ofthe two products. Herrestad Company Segmented Income Statement For the period ending Dec. 31,2011 Total Sales $960,000 $1,080,000 $2,040,000 Variable costs: Direct material 560,000 240,000 800,000