Explore BrainMass

Explore BrainMass

    Solve: Segment Margin

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please help with the following problem. Provide a simple solution for each.

    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 $681,000
    Sales revenues, Commercial $300,000
    Variable expenses, Consumer $384,000
    Variable expenses, Commercial $133,000
    Traceable fixed expenses, Consumer $100,000
    Traceable fixed expenses, Commercial $35,000

    In addition, common fixed expenses totaled $179,000 and were allocated as follows: $104,000 to the Consumer business segment and $75,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:
    $200,000
    $202,000
    $191,000
    $197,000

    © BrainMass Inc. brainmass.com June 3, 2020, 10:10 pm ad1c9bdddf
    https://brainmass.com/business/accounting/solve-segment-margin-218635

    Solution Summary

    This posting helps solve a segment margin. In a very brief, but concise response, this solution provides the simple equation which is required to calculate the segment margin.

    $2.19

    ADVERTISEMENT