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

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