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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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