Advanced Systems has two major business segments-Hardware and Software. In December, the Hardware business segment had sales revenues of $120,000, variable expenses of $54,000, and traceable fixed expenses of $18,000. During the same month, the Software business segment had sales revenues of $95,000, variable expenses of $38,000, and traceable fixed expenses of $22,000. Common fixed expenses totaled $35,000 and were allocated as follows: $20,000 to the Hardware segment and $15,000 to the Software segment. The segment margin for Software is: A. $57,000 B. $35,000 C. $42,000 D. $20,000

Advanced Systems has two major business segments-Hardware and Software. In December, the Hardware business segment had sales revenues of $120,000, variable expenses of $54,000, and traceable fixed expenses of $18,000. During the same month, the Software business segment had sales revenues of $95,000, variable expenses of $38,000, and traceable fixed expenses of $22,000. Common fixed expenses totaled $35,000 and were allocated as follows: $20,000 to the Hardware segment and $15,000 to the Software segment. The segment margin for Software is: A. $57,000 B. $35,000 C. $42,000 D. $20,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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