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. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice $132,000 $422,000 $294,000 $(30,000)
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. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is: Multiple Choice $132,000 $422,000 $294,000 $(30,000)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.2.1P
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