Business, 28.02.2020 02:07 atiyawhite7863

Cervetti Corporation has two major business segments, East and West. In July, the East business segment had sales revenues of $220,000, variable expenses of $125,000, and traceable fixed expenses of $29,000. During the same month, the West business segment had sales revenues of $890,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000 and were allocated as follows: $123,000 to the East business segment and $123,000 to the West business segment.

The contribution margin of the West business segment is:

a. $418,000
b. $66,000
c. -$57,000
d. $513,000

Answers: 3

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Cervetti Corporation has two major business segments, East and West. In July, the East business segm...