SavedAssume a company with two divisions (X and Y) prepared the following segmented income statement:YTotalSales$?$200,000$?Variable expensesContribution marginTraceable fixed expenses120,000140,000260,000?100,000৪0, 000180,000Segment margin$$(20,000)?Common fixed expenses41,200Net operating income$ 10,000What is Division X's segment margin?Multiple Choice$20,000$40,000$71,200< Prev21 of 27Next >%24

Solution: Segment margin is the margin of the segment which is based on costs directly related to…

company with two divisions (X and Y) prepared the following segmented income statement: Y Total 2$ ? $200,000 $ ? le expenses bution margin 120,000 140,000 260,000 ? ? ? ble fixed expenses t margin - fixed expenses erating income 100,000 ৪0, 000 180,000 $ $(20,000) ? 41,200 $ 10,000

company with two divisions (X and Y) prepared the following segmented income statement: Y Total 2$ ? $200,000 $ ? le expenses bution margin 120,000 140,000 260,000 ? ? ? ble fixed expenses t margin - fixed expenses erating income 100,000 ৪0, 000 180,000 $ $(20,000) ? 41,200 $ 10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Saved
Assume a company with two divisions (X and Y) prepared the following segmented income statement:
Y
Total
Sales
$
?
$200,000
$
?
Variable expenses
Contribution margin
Traceable fixed expenses
120,000
140,000
260,000
?
100,000
৪0, 000
180,000
Segment margin
$
$(20,000)
?
Common fixed expenses
41,200
Net operating income
$ 10,000
What is Division X's segment margin?
Multiple Choice
$20,000
$40,000
$71,200
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