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13 April, 10:37

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:

$62,000

$59,000

$62,000

$41,000

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Answers (1)
  1. 13 April, 11:59
    0
    Option (d) is correct.

    Explanation:

    Total Segment Margin = Net Operating Income + common fixed expenses

    = $ 25,000 + $ 37,000

    = $ 62,000

    Total Segment Margin = Segment Margin of Q + Segment Margin of P

    $ 62,000 = $ 21,000 + Segment Margin of P

    or Segment Margin of P = $ 62,000 - $ 21,000

    = $ 41,000
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