A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

A) $294,000
B) $422,000
C) $132,000
D) ($30,000)

Question

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:A) $294,000B) $422,000C) $132,000D) ($30,000)

Jeffrey Atkinson · Accepted Answer

Final Answer : C, Explanation :    Reference: CHO7-Ref42Ieso Corporation has two stores: J and K.During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000.The contribution margin in Store J was $100,000, or 40% of sales.The segment margin in Store K was $30,000, or 15% of sales.Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

A) $294,000
B) $422,000
C) $132,000
D) ($30,000)

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