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Question content area top Part 1 Carlton Company has divided its business into segments based on sales territories: East Coast, Midland, and West Coast. Following

Question content area top

Part 1 Carlton Company has divided its business into segments based on sales territories: East Coast, Midland, and West Coast. Following is Carlton Company's income statement using the contribution margin format:

Reference

Carlton Company
Contribution Margin Income Statement
For the Year Ended December 31, 2024
East Coast Midland West Coast Total
Unit Sold 70 units 60 units 56 units
Net Sales Revenue $756,000 $744,000 $688,800 $2,188,800
Variable Costs 506,520 409,200 399,504 1,315,224
Contribution Margin $249,480 $334,800 $289,296 873,576
Fixed Costs 420,000
Operating Income $453,576

Which business segment provided the greatest total contribution margin? Which business segment had the highest contribution margin ratio?

Question content area bottom

Part 1

Which business segment provided the greatest total contribution margin?

The

East Coast

Midland

West Coast

business segment provided the greatest total contribution margin.

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