Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment. The contribution margin of the West business segment is:
A. $84,000
B. $145,000
C. $422,000
D. $234,000
Answer: A
You might also like to view...
Which of the following statements is true of exculpatory clauses?
A. Exculpatory clauses, when enforced, can effectively relieve a party of liability for the consequences of his own negligence. B. Exculpatory clauses that seek to avoid liability for willful misconduct or fraud, however, are generally enforceable. C. Exculpatory clauses are effective only when the party which benefits by the clause owes a duty to the public. D. Exculpatory clauses are always illegal and cannot be taken up in court.
Which of the following is not true about the effect of an error in the reported ending inventory?
a. After two years, the error "washes out"; b. Operating expenses will be wrong; c. Overstated ending inventory causes net income to be overstated; d. Beginning inventory in the following year will also be wrong; e. Reported sales will not be affected
Ending Work-in-Process for Lee's Carpentry was $64,000 for January. Direct labor and direct materials together for the month were $39,000. Direct labor was twice as much as direct materials. The overhead rate is 70% of direct labor. No jobs were finished during the month. What was beginning Work-in-Process?
A) $6,800 B) $25,000 C) $4,250 D) $15,250 E) $0
The Uniform Commercial Code is a source of contract law that has been adopted by only a
minority of the states. Indicate whether the statement is true or false