QUESTION 3

1. Refer to the Figure below. What is the segment margin for Product B?

   Tyler Company has the following information pertaining to its two product lines for last year:

   	Product A	Product B
   Variable selling and admin. expenses	$38,000	$31,000
   Direct fixed expenses	19,500	34,500
   Sales	250,000	210,000
   Direct fixed selling and admin. expenses	38,000	22,000
   Variable expenses	42,000	31,000
   Operating income	$112,500	$91,500

   Common expenses are $105,000 for the year.

   		$155,000
   		$105,000
   		$85,000
   		$91,500