Tyler Company has the following information pertaining to its two product lines for last year:
Common expenses are $105,000 for the year.
-Refer to Figure 8-11. What is the segment margin for Product B?
A) $155,000
B) $105,000
C) $85,000
D) $91,500

Question

Tyler Company has the following information pertaining to its two product lines for last year:
  Common expenses are $105,000 for the year.
-Refer to Figure 8-11. What is the segment margin for Product B?
A) $155,000 
B) $105,000 
C) $85,000 
D) $91,500

Quizplus · Accepted Answer

The segment margin for Product B can be calculated as follows:
Sales revenue for Product B: $500,000
Variable expenses for Product B: $150,000
Contribution margin for Product B: $350,000
Allocation of common expenses (50% of $105,000): $52,500
Segment margin for Product B: $297,500 ($350,000 - $52,500)
Therefore, the correct answer is D) $91,500.

Tyler Company Has the Following Information Pertaining to Its Two