Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below: In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 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)$88,000
B)$353,000
C)$476,000
D)-$177,000

Question

Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below:  In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 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)$88,000 
B)$353,000 
C)$476,000 
D)-$177,000

Quizplus · Accepted Answer

The Answer of Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below:  In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 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)$88,000 
B)$353,000 
C)$476,000 
D)-$177,000

Clemmens Corporation Has Two Major Business Segments: Consumer and Commercial