Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of

Question

3 years ago

12

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of

$420,000, variable expenses of $225,000, and traceable fixed expenses of $49,000. During the same month, the West business segment had sales revenues of $1,090,000, variable expenses of $552,000, and traceable fixed expenses of $209,000. The common fixed expenses totaled $326,000 and were allocated as follows: $163,000 to the East business segment and $163,000 to the West business segment.
The contribution margin of the West business segment is:______

a. $538,000

b. $753,000

c. $27,000

d. $146,000

Business