Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $320,000, variable expenses of $175,000, and traceable fixed expenses of $39,000. During the same month, the West business segment had sales revenues of $990,000, variable expenses of $512,000, and traceable fixed expenses of $189,000. The common fixed expenses totaled $286,000 and were allocated as follows: $143,000 to the East business segment and $143,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Sagot :

Tundexi

Answer:

Segmented income statement of Tubaugh Corp (East Division)

Particulars                                           Amount

Sales                                                   $320,000

Less: Variable Expenses                   $175,000

Contribution Margin                           $145,000

Less: Direct Fixed Expenses             $39,000

Contribution to indirect expenses  $106,000

Note: While calculating segement margin, indirect fixed expenses ($143,000 in this case)are not considered, these expenses are considered at the time of calculation of final net inome of company as a whole.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.