Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: Sales revenues, Consumer$680,000 Sales revenues, Commercial$280,000 Variable expenses, Consumer$394,000 Variable expenses, Commercial$143,000 Traceable fixed expenses, Consumer$102,000 Traceable fixed expenses, Commercial$45,000 In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:
A. $62,000
B. $164,000
C. $394,000
D. $184,000
Answer: D
You might also like to view...
Explain by what processes the costs of operating assets are allocated to expense
______ refers to the tendency to associate positive traits with a person based on their physical appearance.
a. Physical attraction b. Proximity c. Halo effect d. Horns effect
Adara's product cost per unit under absorption costing is
Last year, Adara Company produced 5000 units and sold 3000 units. The company had no beginning inventory. They incurred the following costs:
A) $42
B) $32
C) $49
D) $58
Elmo Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude?
A. The CEO holds the omnipotent view of management, which believes that external factors have a significant effect on performance outcomes. B. As the organization has an autocratic management style, the employees are responsible for organizational policies. C. The organization has a participative management style and decisions are guided by consensus. D. The CEO holds the view that managers have only a limited role in organization success or failure.