Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 50,000 Net operating income $ 10,000 What is Division A’s contribution margin? Multiple Choice $140,000 $180,000 $160,000 $200,000
Assume a company with two divisions (A and B) prepared the following segmented income statement: A B Total Sales $ ? $ 200,000 $ ? Variable expenses 120,000 140,000 260,000 Contribution margin ? ? ? Traceable fixed expenses 100,000 80,000 180,000 Segment margin $ ? $ (20,000 ) ? Common fixed expenses 50,000 Net operating income $ 10,000 What is Division A’s contribution margin? Multiple Choice $140,000 $180,000 $160,000 $200,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Assume a company with two divisions (A and B) prepared the following segmented income statement:
A | B | Total | ||||||||||
Sales | $ | ? | $ | 200,000 | $ | ? | ||||||
Variable expenses | 120,000 | 140,000 | 260,000 | |||||||||
Contribution margin | ? | ? | ? | |||||||||
Traceable fixed expenses | 100,000 | 80,000 | 180,000 | |||||||||
Segment margin | $ | ? | $ | (20,000 | ) | ? | ||||||
Common fixed expenses | 50,000 | |||||||||||
Net operating income | $ | 10,000 | ||||||||||
What is Division A’s contribution margin?
Multiple Choice
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