In the most recent reporting period, Athens Corporation's Legion division generated net revenues of $2,000,000 and variable expenses of $700,000.Direct fixed expenses were $500,000 and common corporate fixed expenses were $250,000.What is the division's segment margin?

Question

Quizplus · Accepted Answer

Segment margin = Net revenue - Variable expenses - Direct fixed expenses
Segment margin = $2,000,000 - $700,000 - $500,000
Segment margin = $800,000
Therefore, the segment margin is $800,000.

In the Most Recent Reporting Period, Athens Corporation's Legion Division