Multiple Choice
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.The contribution margin of the West business segment is:
A) $84,000
B) $234,000
C) $422,000
D) $145,000
Correct Answer:
Verified
Correct Answer:
Verified
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