Question

Data for Yvavxs408 Corporation and its two divisions, Domestic and Foreign, appear below:

Sales revenues, Domestic $620,000
Variable expenses, Domestic $359,700
Traceable fixed expenses, Domestic $ 74,100
Sales revenues, Foreign $478,400
Variable expenses, Foreign $273,000
Traceable fixed expenses, Foreign $ 61,900
(ID#54797) In addition, Yvavxs408's common fixed expenses totaled S167.800 and were allocated as follows: 587,100 to the Domestic division and $80.700 to the Foreign division
What is the segment margin for the Domestic division?

Answer 1

Segment margin Domestic = $186,200

Step-by-step explanation:

Giving the following information:

Sales revenues= $620,000

Variable expenses= $359,700

Traceable fixed expenses= $74,100

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

Segment margin Domestic = segment contribution margin - traceable fixed expense

Segment margin Domestic = (620,000 - 359,700) - 74,100

Segment margin Domestic = $186,200