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 which of the following?
A) $22,500.
B) $33,333.
C) $60,000.
D) $100,000.

Question

Quizplus · Accepted Answer

The segment margin ratio is calculated as (Segment Margin / Sales). Given that the segment margin ratio is 15%, and knowing that Segment Margin = Sales - Variable Expenses - Traceable Fixed Expenses, we can set up the equation as follows: 0.15 = (Sales - 0.60*Sales - 15,000) / Sales. Solving for Sales gives us $60,000.

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