Question

U.S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U.S. Products' total fixed expenses during July was $200,000. The East Division’s segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000

Answer 1

Answer:

Explanation:

East division segment margin = Contribution margin - Direct fixed expense

Contribution margin = $240,000*35% = $84,000

Direct fixed expenses = $48,000

So segment margin is  84,000 - 48000   = $36000

Answer is option A