During April,Division D of Carney Company had a segment margin ratio of 15%,a variable expense ratio of 60% of sales,and traceable fixed expenses of $15,000.Division D's sales were closest to:
A)$100,000
B)$60,000
C)$33,333
D)$22,500

Question

Quizplus · Accepted Answer

Segment margin = 0.15 F1F1F1S1F1F1F10 Segment sales
Segment variable expenses = 0.60 F1F1F1S1F1F1F10 Segment sales
Segment traceable fixed expenses = $15,000
Segment margin = Segment sales - Segment variable expenses - Segment traceable fixed expenses
0.15 F1F1F1S1F1F1F10 Segment sales = Segment sales - 0.60 F1F1F1S1F1F1F10 Segment sales - $15,000
0.25 F1F1F1S1F1F1F10 Segment sales = $15,000
Segment sales = $15,000 F1F1F1S1F1F1F10 0.25 = $60,000

During April,Division D of Carney Company Had a Segment Margin