Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $290,000, variable expenses of $160,000, and

Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $290,000, variable expenses of $160,000, and traceable fixed expenses of $36,000. During the same month, the West business segment had sales revenues of $960,000, variable expenses of $500,000, and traceable fixed expenses of $183,000. The common fixed expenses totaled $274,000 and were allocated as follows: $137,000 to the East business segment and $137,000 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 $(59,000) $94,000 $(7,000) " Prev 3 of 13 www Next >
image text in transcribed
Tibaugh Corporetion han two major bushess segroents- East and West. in Deceenber, the East bisiness segment had sales revencies-0 expenses of $160000, and tracenble fired experives of $96,000. Duing the same month, the West business sequent had siles reverlues of $960,000, variable exponses of $500,000 and traceable fied expenses of $193,000. The comman fined expenses totaled $274,000 and were allocated as follows: $137000 to zhe Ext biatness segrent and $137000 to the West business segment A properfy construdrd segmented income statement in a contstbution format would show that the segment inargin of the East buriness segment is Minpie Gricice 194000 szoca

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sawyer's Internal Auditing The Practice Of Modern Internal Auditing

Authors: Lawrence Sawyer, Mortimer Dittenhofer, James Scheiner

5th Edition

0894131788, 978-0894131783

More Books

Students also viewed these Accounting questions