Tubaugh Corporation Has Two Major Business Segments--East and West

question 18

Multiple Choice

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment.The contribution margin of the West business segment is:

• A) $84,000
• B) $234,000
• C) $422,000
• D) $145,000

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Definitions:

Recreational Activities

Activities engaged in for enjoyment and relaxation, typically during one's leisure time.

Necessities

Basic needs or essential things that are required for living and maintaining good health, such as food, water, shelter, and clothing.

Commodities

Basic goods used in commerce that are interchangeable with other goods of the same type, often used in economic trading and as benchmarks in the global market.

Public Man

Public Man pertains to the concept of an individual who actively participates in and is concerned with the public or community affairs, as opposed to being focused solely on private or personal interests.