Assume the following information for Green Bluff's #1 Product Line:
$$\begin{array} { l r }
\text { Sales } & \$ 600,000 \
\text { Variable manufacturing expenses } & 120,000 \
\text { Direct fixed manufacturing expenses } & 75,000 \
\text { Variable selling and administrative expenses } & 65,000 \
\text { Direct fixed selling and administrative expenses } & 60,000
\end{array}$$
-Refer to the Figure.What is the segment margin of the product line?
A)$280,000
B)$325,000
C)$350,000
D)$400,000

Question

Assume the following information for Green Bluff's #1 Product Line:
 $$\begin{array} { l r } 
\text { Sales } & \$ 600,000 \
\text { Variable manufacturing expenses } & 120,000 \
\text { Direct fixed manufacturing expenses } & 75,000 \
\text { Variable selling and administrative expenses } & 65,000 \
\text { Direct fixed selling and administrative expenses } & 60,000
\end{array}$$
-Refer to the Figure.What is the segment margin of the product line?
A)$280,000
B)$325,000
C)$350,000
D)$400,000

Quizplus · Accepted Answer

The segment margin is calculated by subtracting all variable and direct fixed expenses from sales: $600,000 - $120,000 - $75,000 - $65,000 - $60,000 = $280,000.

Assume the Following Information for Green Bluff's #1 Product Line