Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here: The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the divisional segment margin for the whole Construction Division, including all relevant costs, is:

Question

Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:  The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the divisional segment margin for the whole Construction Division, including all relevant costs, is:

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The Answer of Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division-Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:  The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the divisional segment margin for the whole Construction Division, including all relevant costs, is:

Henderson Industrial Products Uses a Centralized Service Department for Procurement