Question

Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: 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: Select one: a. $164,000 b. $62,000 c. $394,000 d. $184,000

Answer 1

d. $184,000

Step-by-step explanation:

Some information is missing, so I looked for similar questions:

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

Consumer Commercial Total

Revenue $680,000 $280,000 $960,000

Variable expenses ($394,000) ($143,000) ($537,000)

Contribution margin $286,000 $137,000 $423,000

Traceable fixed exp. ($102,000) ($45,000) ($147,000)

Segment margin $184,000 $92,000 $276,000

Common fixed exp. ($210,000)

Operating income $66,000