carsengilbert
14.12.2019 •
Business
Johns company operates in three different industries each of which is appropriately regarded as a reportable segment. segment no. 1 contributed 60 percent of johns company's total sales. sales for segment no. 1 were $500,000 and total variable costs were $400,000. total common costs for all segments were $320,000. johns allocated common costs based on the ratio of each segment's sales to the total sales. what should be the contribution margin presented for segment no. 1?
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Ответ:
$100,000
Explanation:
Contribution Margin=Sales Revenue − Variable Costs
For segment 1
Sales = $500,000
Variable costs = $400,000
Contribution Margin = $100,000
Therefore the contribution margin presented for segment number 1 is $100,000 while the attributable common cost for segment 1 will be (0.6*320,000) = $192,000
Ответ: