Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $390,000, variable expenses of $210,000, and traceable fixed expenses of $46,000. During the same month, the West business segment had sales revenues of $1,060,000, variable expenses of $540,000, and traceable fixed expenses of $203,000. The common fixed expenses totaled $314,000 and were allocated as follows: $157,000 to the East business segment and $157,000 to the West business segment. The contribution margin of the West business segment is:

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
icon
Related questions
Question
Tubaugh Corporation has two major business segments-East and West. In
December, the East business segment had sales revenues of $390,000, variable
expenses of $210,000, and traceable fixed expenses of $46,000. During the same
month, the West business segment had sales revenues of $1,060,000, variable
expenses of $540,000, and traceable fixed expenses of $203,000. The common
fixed expenses totaled $314,000 and were allocated as follows: $157,000 to the
East business segment and $157,000 to the West business segment.
The contribution margin of the West business segment is:
Multiple Choice
$520,000
O $(39,000)
O
$717,000
O $134,000
Transcribed Image Text:Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales revenues of $390,000, variable expenses of $210,000, and traceable fixed expenses of $46,000. During the same month, the West business segment had sales revenues of $1,060,000, variable expenses of $540,000, and traceable fixed expenses of $203,000. The common fixed expenses totaled $314,000 and were allocated as follows: $157,000 to the East business segment and $157,000 to the West business segment. The contribution margin of the West business segment is: Multiple Choice $520,000 O $(39,000) O $717,000 O $134,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College