Carroll Corporation has two products, Q and P. During June, the company's net operating income was $19,500, and the common fixed expenses were $43,000. The contribution margin ratio for Product Q was 40%, its sales were $128,000, and its segment margin was $35,000. If the contribution margin for Product P was $33,000, the segment margin for Product P was:

Question

Business

Carmelo Frey

7 September, 00:57

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $19,500, and the common fixed expenses were $43,000. The contribution margin ratio for Product Q was 40%, its sales were $128,000, and its segment margin was $35,000. If the contribution margin for Product P was $33,000, the segment margin for Product P was:

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Answers (1)

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Clelia · Answer 1

Segment margin of product P-$27,500.00

Explanation:

The total company's segment margin is net income plus common fixed expenses.

Total segment margin=$19,500+$43,000=$62,500.00

Total segment margin can be determined as the segment margin of products Q and P

Segment margin of product Q is $35,000

segment margin of product P=$62,500-$35,000=$ 27,500.00

Hence, the segment margin of product P is $ 27,500.00