Question

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: Sales revenues, Consumer $ 680,000 Sales revenues, Commercial $ 280,000 Variable expenses, Consumer $ 394,000 Variable expenses, Commercial $ 143,000 Traceable fixed expenses, Consumer $ 102,000 Traceable fixed expenses, Commercial $ 45,000 In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. The contribution margin of the Commercial business segment is: _________a. $184,000 b. $62,000 c. $137,000 d. $423,000

Answer 1

Answer:

Explanation:

Commercial business segment contribution margin = Sales- Variable expenses = 280,000- 143,000 = $137,000

So the answer is C