Memuru Company has the following information pertaining to its two divisions for last year:
Common expenses are $30,000 for the year.

What is the segment margin for Division Y?
A) $560,000
B) $450,000
C) $320,000
D) $260,000

Question

Memuru Company has the following information pertaining to its two divisions for last year: 
 Common expenses are $30,000 for the year.
 
What is the segment margin for Division Y?
A) $560,000 
B) $450,000 
C) $320,000 
D) $260,000

Quizplus · Accepted Answer

Segment margin = Sales - Variable expenses - Variable selling and admin.expenses - Direct fixed expenses - Direct fixed selling and admin.expenses
Segment margin for Division Y = $600,000 - $85,000 - $100,000 - $75,000- $80,000 = $260,000

Memuru Company Has the Following Information Pertaining to Its Two