Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin of the R-100 product line?
A) $775,000
B) $690,000
C) $525,000
D) $400,000

Question

Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
 Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin of the R-100 product line?
A) $775,000 
B) $690,000 
C) $525,000 
D) $400,000

Quizplus · Accepted Answer

The Answer of Pennington Products Pennington Products has two product lines: R-100 and R-200. Revenue and cost information for each of the product lines are as follows:
 Pennington has common fixed expenses of $380,000 per year. Last year, the company produced and sold 35,000 units of R-100 and 25,000 units of R-200.
Refer to the Pennington Products information above. What is the segment margin of the R-100 product line?
A) $775,000 
B) $690,000 
C) $525,000 
D) $400,000

Pennington Products Pennington Products Has Two Product Lines: R-100 and R-200