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REY [17]
3 years ago
8

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of

$320,000, variable expenses of $175,000, and traceable fixed expenses of $39,000. During the same month, the West business segment had sales revenues of $990,000, variable expenses of $512,000, and traceable fixed expenses of $189,000. The common fixed expenses totaled $286,000 and were allocated as follows: $143,000 to the East business segment and $143,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:
Business
1 answer:
postnew [5]3 years ago
5 0

Answer:

Segmented income statement of Tubaugh Corp (East Division)

Particulars                                           Amount

Sales                                                   $320,000

Less: Variable Expenses                   <u>$175,000</u>

Contribution Margin                           $145,000

Less: Direct Fixed Expenses             <u>$39,000</u>

Contribution to indirect expenses  <u>$106,000</u>

Note: While calculating segement margin, indirect fixed expenses ($143,000 in this case)are not considered, these expenses are considered at the time of calculation of final net inome of company as a whole.

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5 0
2 years ago
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erastova [34]

Answer:

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7 0
3 years ago
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3 years ago
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frosja888 [35]

Answer:

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