Question

The contribution margin ratio for Product Beautiful was 40%, its sales were $140,000, and its segment margin was $47,000. Q) If the contribution margin for Product Gorgeous was $45,000, what was the segment margin for Product Gorgeous?

Answer 1

Answer:

$33,500

Explanation:

Calculation for what was the segment margin for Product Gorgeous

Using this formula

Net operating profit= (Product Beautiful segment margin + Product Gorgeous segment margin ) - Common fixed expenses

Let plug in the formula

$25,500= ($47,000 +Product Gorgeous Segment margin ) - 55,000

$80,500= $47,000 + Product Gorgeous segment margin

$33,500=Product Gorgeous segment margin

($80,500-$47,000)

Therefore the segment margin for Product Gorgeous is $33,500