Nolan Company Has Two Segments: Audio and Video

question 32

Multiple Choice

Nolan Company has two segments: Audio and Video. Sales for the Audio Segment were $500,000, and variable costs were 40% of sales. The Video Segment also had sales of $500,000, but variable costs were 60% of sales. Fixed costs directly traceable to the Audio and Video segments were $150,000 and $120,000, respectively. Common fixed costs of $200,000 were arbitrarily allocated equally to each segment. What was the contribution margin of the Audio Segment.

• A)$50,000
• B)$300,000
• C)$200,000
• D)$150,000

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Definitions:

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding, across the lifespan, influenced by genetics and environmental factors.

Language Use

The manner in which words and phrases are employed to communicate ideas or feelings.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that validates one's existing beliefs or theories.

Bilingualism

The capacity to communicate smoothly in two languages.