Green Bluff
Assume the following information for the #1 Product Line for Green Bluff: $$\begin{array} { l r }
\text { Sales } & \$ 600,000 \
\text { Variable manufacturing expenses } & 120,000 \
\text { Direct fixed manufacturing expenses } & 75,000 \
\text { Variable selling and administrative expenses } & 65,000 \
\text { Direct fixed selling and administrative expenses } & 60,000
\end{array}$$
-Refer to Green Bluff. What is the segment margin of the product line?
A) $280,000
B) $325,000
C) $350,000
D) $400,000

Question

Green Bluff
Assume the following information for the #1 Product Line for Green Bluff: $$\begin{array} { l r } 
\text { Sales } & \$ 600,000 \
\text { Variable manufacturing expenses } & 120,000 \
\text { Direct fixed manufacturing expenses } & 75,000 \
\text { Variable selling and administrative expenses } & 65,000 \
\text { Direct fixed selling and administrative expenses } & 60,000
\end{array}$$
-Refer to Green Bluff. What is the segment margin of the product line?
A) $280,000
B) $325,000
C) $350,000
D) $400,000

Quizplus · Accepted Answer

The segment margin is calculated as Sales minus all variable and direct fixed expenses: $600,000 - $120,000 - $75,000 - $65,000 - $60,000 = $280,000.

Green Bluff Assume the Following Information for the #1 Product

Green Bluff
Assume the Following Information for the #1 Product