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Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is: O $220,000 $142.000 O $31,000) O $(29.000) Next
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