Question

Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: 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. Select one: a. test b. test c. test d. test

Answer 1

Answer:

The answer is "$\ 137,000$"

Explanation:

Please find the complete question in the attached file.

Commercial sector contribution margin

$=\ 137,000$

Margin per unit of contribution = sales price – Unit cost variables

Margin of Contributions = Revenue Sales - Fixed expenses

Aerospace industry variable costs

$=\ 280,000- \ 143,000 =\ 137,000$