Assume the following information for a product line: Sales $700,000 Variable cost of goods sold 185,000 Direct fixed overhead 115,000 Variable selling and administrative expenses 70,000 Direct fixed selling and admin. expenses 90,000 What is the segment margin of the product line? a. $200,000 b. $325,000 c. $350,000 d. $240,000
Assume the following information for a product line: Sales $700,000 Variable cost of goods sold 185,000 Direct fixed overhead 115,000 Variable selling and administrative expenses 70,000 Direct fixed selling and admin. expenses 90,000 What is the segment margin of the product line? a. $200,000 b. $325,000 c. $350,000 d. $240,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume the following information for a product line:
Sales |
$700,000 |
Variable cost of goods sold |
185,000 |
Direct fixed |
115,000 |
Variable selling and administrative expenses |
70,000 |
Direct fixed selling and admin. expenses |
90,000 |
What is the segment margin of the product line?
a.
$200,000
b.
$325,000
c.
$350,000
d.
$240,000
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