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 2 years ago

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