Question
A and B are autonomous segments of a corporation. They do not share facilities, equipment or staff functions. They have no beginning or ending inventories,
A and B are autonomous segments of a corporation. They do not share facilities, equipment or staff functions. They have no beginning or ending inventories, and the number of units produced is equal to the number of units sold. Following is financial information relating to the two divisions. A is in column 2; B is in column 3.
|
| (A) | (B) |
| Sales | $150,000 | $400,000 |
| Other Revenue | 10,000 | 15,000 |
| Direct Materials | 30,000 | 65,000 |
| Direct Labor | 20,000 | 40,000 |
| Variable factory overhead | 5,000 | 15,000 |
| Fixed factory overhead | 25,000 | 55,000 |
| Variable S&A expense | 15,000 | 30,000 |
| Fixed S&A expense | 35,000 | 60,000 |
| Central corporate expenses (allocated) | 12,000 | 20,000 |
What is the total contribution margin of Segment B?
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
