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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 >
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