Data for September for Mossman Corporation and its two major business segments,

Question

Data for September for Mossman Corporation and its two major business segments, North and South, appear below:

In addition, common fixed expenses totaled $319,000 and were allocated as follows: $160,000 to the North business segment and $159,000 to the South business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

Data for September for Mossman Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $319,000 and were allocated as follows: $160,000 to the North business segment and $159,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

Explanation / Answer

North contribution=sales-variable cost 540000-259000=281000 contribution=fixed cost+margin 2810000=230000+margin margin=281000-230000=51000 South contribution=sales-variable cost 800000-408000=392000 contribution=fixed cost+margin 392000=239000+margin margin=392000-239000=153000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.