Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments 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:
A) $164,000
B) $62,000
C) $394,000
D) $184,000

Question

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments 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:
A) $164,000 
B) $62,000 
C) $394,000 
D) $184,000

Quizplus · Accepted Answer

11ea7761_1836_0d33_81a5_8bff51e6dba4_TB2580_00

Ferrar Corporation Has Two Major Business Segments: Consumer and Commercial