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Beverage Depot Has Two Divisions (Soda and Juice) and Has

Question 50

Multiple Choice

Beverage Depot has two divisions (Soda and Juice) and has the following information available for the current year:
 Beverage Depot  Sales revenue-Soda $1,500,000 Sales revenue-Juice 2,500,000 Variable costs-Soda 600,000 Variable costs-Juice 1,120,000 Direct fixed costs-Soda 200,000 Direct fixed costs-Juice 225,000 Allocated fixed costs-Soda 125,000 Allocated fixed costs-Juice 175,000 Unallocated common fixed costs 75,000\begin{array} {cc} \hline\quad\quad\quad\quad\quad\quad\quad\text { Beverage Depot } \quad\quad\quad\quad\quad\quad \\\end{array} \\\begin{array} { l r }\hline\text { Sales revenue-Soda } & \$ 1,500,000 \\\text { Sales revenue-Juice } & 2,500,000 \\\text { Variable costs-Soda } & 600,000 \\\text { Variable costs-Juice } & 1,120,000 \\\text { Direct fixed costs-Soda } & 200,000 \\\text { Direct fixed costs-Juice } & 225,000 \\\text { Allocated fixed costs-Soda } & 125,000 \\\text { Allocated fixed costs-Juice } & 175,000 \\\text { Unallocated common fixed costs } & 75,000\end{array} Beverage Depot's Juice segment income is:


A) $1,200,000
B) $1,100,000
C) $ 980,000
D) $1,380,000

Correct Answer:

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