The following information pertains to the South Territory of Bama Company: $\begin{array}{lr}
\text { Net Sales } & \$ 5,000 \
\text { Variable costs: } & \
\text { Cost of merchandise sold } & 1,200 \
\text { Operating expenses } & 450 \
\text { Fixed costs: } & \
\text { Controllable by segment manager } & 600 \
\text { Controllable by others } & 250 \
\text { Unallocated costs } & 750
\end{array}$ The contribution by segment is _____.
A)$2,500
B)$2,750
C)$2,350
D)$3,350

Question

Quizplus · Accepted Answer

Contribution by segment = Net sales - Variable costs - Fixed costs controllable by segment manager= $5,000 - $1,200 - $450 - $600 = $2,750

The Following Information Pertains to the South Territory of Bama