Question

Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West East Units produced and sold 31,000 41,000 Selling price per unit $ 6 $ 13 Variable costs per unit 2 3 Direct fixed cost 49,000 111,000 Common fixed cost 41,000 41,000 Common fixed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is:

Answer 1

Answer:

Total= $34,000

Explanation:

Giving the following information:

West Units produced and sold 31,000 units

Selling price per unit $ 6

Variable costs per unit 2

Direct fixed cost 49,000

Common fixed cost 41,000

Segment margin:

Sales= 186,000

Variable costs= 62,000

Direct fixed costs= 49000

Common fixed costs= 41000

Total= $34,000