Tubaugh Corporation has two major business segments--East and West. In December,

Question

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $420,000, variable expenses of $225,000, and traceable fixed expenses of $49,000. During the same month, the West business segment had sales revenues of $1,090,000, variable expenses of $552,000, and traceable fixed expenses of $209,000. The common fixed expenses totaled $326,000 and were allocated as follows: $163,000 to the East business segment and $163,000 to the West business segment. The contribution margin of the West business segment is:

Explanation / Answer

West Segment
Sales Revenue 1090000
Less:- Variable Cost 552000
Contribution 538000

Therfore answer is Option A

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