Sassy Scents operates two retail outlets in Vaughan Mills and Yorkville. The following information relates to the Yorkville location: $\begin{array} { l r }
\text { Sales Revenue } & \$ 800,000 \
\text { Variable operating expenses } & 300,000 \
\text { Fixed expenses: } & \
\text { Traceable to Yorkville and controllable by Yorkville } & 175,000 \
\text { Traceable to Yorkville and controllable by others } & 100,000
\end{array}$ Yorkville's segment profit margin is:

Question

Sassy Scents operates two retail outlets in Vaughan Mills and Yorkville. The following information relates to the Yorkville location: $\begin{array} { l r } 
\text { Sales Revenue } & \$ 800,000 \
\text { Variable operating expenses } & 300,000 \
\text { Fixed expenses: } & \
\text { Traceable to Yorkville and controllable by Yorkville } & 175,000 \
\text { Traceable to Yorkville and controllable by others } & 100,000
\end{array}$ Yorkville's segment profit margin is:

Quizplus · Accepted Answer

Yorkville's segment profit margin is calculated as Sales Revenue minus Variable Operating Expenses and all Fixed Expenses. So, $800,000 - $300,000 - $175,000 - $100,000 = $225,000.

Sassy Scents Operates Two Retail Outlets in Vaughan Mills and Yorkville