Nolan Company Has Two Segments: Audio and Video

question 14

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 segment margin of the Video Segment?

• A)$200,000
• B)$ 80,000
• C)$(20,000)
• D)$ 150,000

---

Definitions:

Cross-sectional Study

A study format that examines information from a whole population or a representative sample at a particular moment.

Long-term Memory

The storage of information over an extended period, capable of lasting from minutes to a lifetime, encompassing facts, experiences, and skills.

Short-term Memory

A type of memory that holds a small amount of information for a short period, typically seconds to minutes.

Tolerate Sleeplessness

The ability to endure periods without sleep without significant impairment to functions or health.