Examlex
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:
Division Profits
The earnings attributed to a specific branch or department within a larger organization, reflecting its financial performance.
Profit Centers
Individual departments or units within a business that are responsible for generating their own profits.
Decision Making
The process of identifying and choosing alternatives based on the values and preferences of the decision maker.
Cost Center
A business unit or department that incurs expenses but does not directly generate revenues, typically evaluated on its cost efficiency.
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