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

question 310

Multiple Choice

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $370,000, variable expenses of $200,000, and traceable fixed expenses of $44,000. During the same month, the West business segment had sales revenues of $1,040,000, variable expenses of $532,000, and traceable fixed expenses of $199,000. The common fixed expenses totaled $306,000 and were allocated as follows: $153,000 to the East business segment and $153,000 to the West business segment.The contribution margin of the West business segment is:

• A) $508,000
• B) $(27,000)
• C) $693,000
• D) $126,000

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