Tubaugh Corporation has two major business segments-East and West. In December,

Question

Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment. The contribution margin of the West business segment is: Multiple Choice $84,000 $234,000 $422,000 $145,000

Explanation / Answer

Contribution of West Business segment Sales revenue 140,000 less Variable expense -56,000 contribution margin 84,000 answer

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