Carroll Corporation has two products, Q and P.During June, the company's net operating income was $25,000, and the common fixed expenses were $37,000.The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000.If the contribution margin for Product P was $80,000, the segment margin for Product P was:

A) $62,000
B) $59,000
C) $62,000
D) $41,000

Question

Zybrea Knight · Accepted Answer

Final Answer : D, Explanation :    Net operating income = Segment margin - Common fixed expenses$25,000 = Segment margin - $37,000Segment margin = $25,000 + $37,000 = $62,000   Total segment margin = Product Q segment margin + Product P segment margin$62,000 = $21,000 + Product P segment marginProduct P segment margin = $62,000 - $21,000 = $41,000

Definitions

Learning Objectives

Learning Objectives

Related questions