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Clemmens Corporation Has Two Major Business Segments: Consumer and Commercial

Question 70

Multiple Choice

Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below: Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below: In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial 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: A) $88,000 B) $353,000 C) $476,000 D) -$177,000 In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial 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:


A) $88,000
B) $353,000
C) $476,000
D) -$177,000

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