The following selected data relate to the Texas Division of Out West Inc. Sales revenue: $3,580,000 Uncontrollable fixed costs traceable to the division: $360,000 Allocated corporate overhead: $90,000 Controllable fixed costs traceable to the division: $12,000 Variable costs: 35% of revenue Compute the following for the Texas Division: • Segment contribution margin

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.16E
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The following selected data relate to the Texas Division of
Out West Inc.
Sales revenue: $3,580,000
Uncontrollable fixed costs traceable to the division:
$360,000
Allocated corporate overhead: $90,000
Controllable fixed costs traceable to the division: $12,000
Variable costs: 35% of revenue
Compute the following for the Texas Division:
• Segment contribution margin
Transcribed Image Text:The following selected data relate to the Texas Division of Out West Inc. Sales revenue: $3,580,000 Uncontrollable fixed costs traceable to the division: $360,000 Allocated corporate overhead: $90,000 Controllable fixed costs traceable to the division: $12,000 Variable costs: 35% of revenue Compute the following for the Texas Division: • Segment contribution margin
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