Ferrar Corporation Has Two Major Business Segments: Consumer and Commercial

question 159

Multiple Choice

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 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:

• A) $164,000
• B) $62,000
• C) $394,000
• D) $184,000

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