Question

In: Accounting

Walsh Corporation has two major business segments: Consumer and Commercial.

Walsh Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below:






Sales revenues, Consumer$680,000
Sales revenues, Commercial$280,000
Variable expenses, Consumer$394,000
Variable expenses, Commercial$143,000
Traceable fixed expenses, Consumer$102,000
Traceable fixed expenses, Commercial$45,000



In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment.



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

Select one:

a. $164,000

b. $184,000

c. $62,000

d. $394,000

Solutions

Expert Solution

Segment margin
Consumer business
sales 680,000
less variable expense 394,000
contribution margin 286,000
less traceable expense 102,000
segment margin 184,000
answer)
option b
184,000

ekkarill92 answered 3 years ago
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