Tennison Corporation has two major business segments?Consumer and Commercial. Da

Question

Tennison Corporation has two major business segments?Consumer and Commercial. Data for the
segment and for the company for May appear below:

Sales revenues, Consumer ................................................. $970,000
Sales revenues, Commercial .............................................. $580,000
Variable expenses, Consumer ........................................... $514,000
Variable expenses, Commercial ........................................ $267,000
Traceable fixed expenses, Consumer ................................ $184,000
Traceable fixed expenses, Commercial ............................. $110,000

In addition, common fixed expenses totaled $371,000 and were allocated as follows: $186,000 to
the Consumer business segment and $185,000 to the Commercial business segment.


A properly constructed segmented income statement in a contribution format would show that
the segment margin of the Consumer business segment is:
A. $272,000
B. $270,000
C. $86,000
D. $514,000

A properly constructed segmented income statement in a contribution format would show that
the net operating income of the company as a whole is:
A. $769,000
B. $104,000
C. $475,000
D. ?$267,000

Explanation / Answer

1 A 970-514-184= 272 2 B 104 Revenues- expenses in total.

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