Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 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:
A) $66,000
B) $(144,000)
C) $423,000
D) $276,000

Question

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below:  In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 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:
A) $66,000 
B) $(144,000) 
C) $423,000 
D) $276,000

Quizplus · Accepted Answer

The Answer of Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below:  In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 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:
A) $66,000 
B) $(144,000) 
C) $423,000 
D) $276,000

Ferrar Corporation Has Two Major Business Segments: Consumer and Commercial