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Wk 3 Qulz 6 Help Save & Exit Tubaugh Corporation has two major business segments

ID: 2339264 • Letter: W

Question

Wk 3 Qulz 6 Help Save & Exit Tubaugh Corporation has two major business segments-East and West. In December, the East business segment had sales r expenses of $145,000, and traceable fioxed expenses of $33.000. expenses of $488,000, and traceable fixed expenses of $177000. The common fixed expenses totaled $262.000 and were allocated as follows: $131.000 to the East business segment and $131,000 to the West business segment. During the same month, the West business segment had sales revenues of $930,000, varlable The contribution margin of the West business segment is: $/41,000)

Explanation / Answer

West business segment had sales revenue of $ 930,000 and variable expenses of $ 488,000

Contribution Margin = Sales - Variable Cost

The contribution margin of the west business segment is $ 442,000.

For any query feel free to ask in comments.

Particulars Amount ($) Sales revenue 930,000 Less: Variable expenses 489,000 Contribution Margin 442,000
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