Data for January for Bondi Corporation and its two major business segments, North and South, appear below:
Sales revenues, North $ 548,000
Variable expenses, North $ 318,000
Traceable fixed expenses, Nort $ 65,600
Sales revenues, South $ 423,500
Variable expenses, South $ 241,600
Traceable fixed expenses, South $ 54,800
In addition, common fixed expenses totaled $148,600 and were allocated as follows: $77,200 to the North business segment and $71,400 to the South business segment.
A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:
a. $87,200
b. $318,000
c. $164,400
d. $152,800

Answer :

Answer:

Segment margin North= $164,400

Explanation:

Giving the following information:

Sales revenues= $548,000

Variable expenses= $318,000

Traceable fixed expenses= $65,600

To calculate the segment margin for the North division, we need to use the following formula:

Segment margin North= segment contribution margin - traceable fixed expense

Segment margin North= (548,000 - 318,000) - 65,600

Segment margin North= $164,400

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