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:

Work Of Mourning

The work of mourning refers to the psychological process of coping with a significant loss, involving the gradual acceptance of loss and adjustment to a life without the deceased.

Completion

The act of finishing or bringing something to an end, fulfilling all necessary conditions or tasks.

Drowned

Death caused by submersion in and inhalation of water or another liquid.

Effectively Coping

Successfully managing stressful or challenging situations through adaptive and constructive methods.