Home-Plus Inc.has two business segments-Commercial and Residential.The following data has been provided for the year 2014.
The company incurred $1,500 as fixed costs.
Requirements:
a)Prepare the income statement of Home-Plus showing the contribution margin of each segment.
b)Calculate the contribution margin ratio of each segment.Which segment is more profitable and why?
Correct Answer:
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b)Contribution margin ratio is contribu...View Answer
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