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    Contribution margin of the Commercial business segment

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    Question 17: (1 point)
    Ferrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below:

    Sales revenues, Consumer $680,000
    Sales revenues, Commercial $298,000
    Variable expenses, Consumer $388,000
    Variable expenses, Commercial $131,000
    Traceable fixed expenses, Consumer $100,000
    Traceable fixed expenses, Commercial $30,000

    In addition, common fixed expenses totaled $181,000 and were allocated as follows: $110,000 to the Consumer business segment and $71,000 to the Commercial business segment.

    The contribution margin of the Commercial business segment is:

    $158,000

    $167,000

    $169,000

    $171,000

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    https://brainmass.com/business/accounting/contribution-margin-commercial-business-segment-211157

    Solution Summary

    This provides the steps to calculate the contribution margin of the Commercial business segment

    $2.19

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