htm Exam -ch 6,7,8&96 Help Seve & Exit TB MC Qu. 6-80 Carroll Corporation has tw

Question

htm Exam -ch 6,7,8&96 Help Seve & Exit TB MC Qu. 6-80 Carroll Corporation has two products, Q and P. During.. Carroll Corporation has two products, Q and P. During June, the company's net operating income was $24 500 and the common fixed expenses were $53,000. The Contribution margin rate for Product Q was 40%, its sales were $138000, and its segment margin was 45.000 if the contribution margin for Product P was $43,000, the ces segment margin for Product P was: Multiple Choice $32.500 $45.000 $8.000 $77 500

Explanation / Answer

6.80 Carrol Corporations have two products, Q and P:

Total segment margin for the carrol corporations:

Net Operating Income = $24,500

Add: Common Fixed Expenses: $53,000  

Total Segment Margin = $ 77,500

Segment MArgin for Product P

Total Segment Margin is $77,500

Segment Margin for Product Q is $45,000  

Segment Margin for P is    $32,500  

Hence the correct Answer is first Point.

Combe Corporation:

Alpha Division:

Segment contribution margin = segment Sales - Segment Variable Cost = $215,000 - $139,700 = $75,300

Segment Contribution Margin Ratio = Segment Contribution Margin/ Segment Sales = $75,300/$215,000 = 0.350233

Breakeven in sales dollars for Alpha = Segment Traceable Fixed Expense/Segment Contribution Margin Ratio = 84150/0.350233 = $240,126

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