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:
A) $62,000
B) $59,000
C) $62,000.
D) $41,000

Question

Quizplus · Accepted Answer

11ea7761_1817_afd2_81a5_8dcbd8d1a65f_TB2580_00 Net operating income = Segment margin - Common fixed expenses
$25,000 = Segment margin - $37,000
Segment margin = $25,000 + $37,000 = $62,000
 11ea7761_1817_afd3_81a5_1bc8111be52b_TB2580_00 Total segment margin = Product Q segment margin + Product P segment margin
$62,000 = $21,000 + Product P segment margin
Product P segment margin = $62,000 - $21,000 = $41,000

Carroll Corporation Has Two Products,Q and P