Niesen Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for August appear below: In addition, common fixed expenses totaled $282,000 and were allocated as follows: $127,000 to the Consumer business segment and $155,000 to the Commercial business segment.
-The contribution margin of the Commercial business segment is:
A) $146,000
B) $169,000
C) $546,000
D) $296,000

Question

Niesen Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for August appear below:  In addition, common fixed expenses totaled $282,000 and were allocated as follows: $127,000 to the Consumer business segment and $155,000 to the Commercial business segment.
-The contribution margin of the Commercial business segment is:
A) $146,000 
B) $169,000 
C) $546,000 
D) $296,000

Quizplus · Accepted Answer

The contribution margin is calculated as sales revenue minus variable costs. Without specific figures for sales and variable costs, we assume the correct answer is based on provided options.

Niesen Corporation Has Two Major Business Segments-Consumer and Commercial