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The two top selling segments of the Small Adorable Animal Depot are the Bunny segment and the Sloth segment. The Bunny segment sold 5,000
The two top selling segments of the Small Adorable Animal Depot are the Bunny segment and the Sloth segment. The Bunny segment sold 5,000 units while the Sloth segment sold 6,200 units in the prior period. The Bunny segment generated $210,000 of sales revenue and the Sloth segment generated $185,000 of sales revenue. The following information is available for the company's prior period: CM % Bunny 35% Sloth 45% $65,000 $15,000 $50,000 Total Fixed Costs Period Costs Product Costs $87,000 $69,000 $18,000 Of the Total Fixed Costs, 22% are direct fixed costs. The remaining Fixed Costs are common fixed costs that have been allocated to their respective segments. Which of the following statements is correct? O A. Total segment margin for both the Bunny and Sloth segments is $4,750. B. Total traceable costs total $14,300 for the Sloth segment. C. Operating income for the Bunny segment is $1,360. OD. Total operating income for the period is $86,250. O E. The Sloth segment should be evaluated on a segment margin of $68,950.
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