Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the
Question:
Clemmens Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for August appear below:
Sales revenues, Consumer | $390,000 |
Sales revenues, Commercial | $530,000 |
Variable expenses, Consumer | $179,000 |
Variable expenses, Commercial | $265,000 |
Traceable fixed expenses, Consumer | $59,000 |
Traceable fixed expenses, Commercial | $64,000 |
In addition, common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment.
A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:
options:
| $88,000 |
| $353,000 |
| $476,000 |
| -$177,000 |
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso