Cervetti Corporation has two major business segments-East and West. In July, the

Question

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $230,000, variable expenses of $130,000, and traceable fixed expenses of $30,000. During the same month, the West business segment had sales revenues of $900,000, variable expenses of $476,000, and traceable fixed expenses of $171,000. The common fixed expenses totaled $250,000 and were allocated as follows: $125,000 to the East business segment and $125,000 to the West business segment.

The contribution margin of the West business segment is:

$424,000
$(53,000)
$525,000
$70,000

Explanation / Answer

424000

The correct answer is $ 424000

424000

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