Question

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $24,000, and the common fixed expenses were $52,000. The contribution margin ratio for Product Q was 40%, its sales were $137,000, and its segment margin was $44,000. If the contribution margin for Product P was $42,000, the segment margin for Product P was:

Answer 1

Answer:

$32,000= Segment margin product P

Explanation:

Giving the following information:

Company net operating income= $24,000

Common fixed costs= $52,000

Product Q:

Segment margin= $44,000

Contribution margin for Product P= $42,000

We need to calculate the segment margin for Product P.

Net income= Segment margin product P + Segment margin product Q - common fixed costs

24,000= Segment margin product P + 44,000 - 52,000

32,000= Segment margin product P