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Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is: $220,000 $142,000 $(29,000) $(31,000)

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is: $220,000 $142,000 $(29,000) $(31,000)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is: $220,000 $142,000 $(29,000) $(31,000)
Transcribed Image Text:Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $410,000, variable expenses of $220,000, and traceable fixed expenses of $48,000. During the same month, the West business segment had sales revenues of $1,080,000, variable expenses of $548,000, and traceable fixed expenses of $207,000. The common fixed expenses totaled $322,000 and were allocated as follows: $161,000 to the East business segment and $161,000 to the West business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is: $220,000 $142,000 $(29,000) $(31,000)
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