Question
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $310,000, variable expenses of $170,000, and
Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $310,000, variable expenses of $170,000, and traceable fixed expenses of $38,000. During the same month, the West business segment had sales revenues of $980,000, variable expenses of $508,000, and traceable fixed expenses of $187,000. The common fixed expenses totaled $282,000 and were allocated as follows: $141,000 to the East business segment and $141,000 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:
Multiple Choice
- $(51,000)
- $102,000
- $170,000
- $(1,000)
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