Segment a Had Sales Revenue of $900,000 and the Following

question 95

Multiple Choice

Segment A had sales revenue of $900,000 and the following costs: direct materials, $252,000; direct labor, $36,000; variable manufacturing overhead, $72,000; and fixed manufacturing overhead, $315,000. If segment A is dropped, 25% of the fixed manufacturing overhead costs would be avoided. Calculate the segment profit.

• A) $225,000
• B) $303,750
• C) $461,250
• D) $540,000

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Definitions:

Home Health Care

Medical and nursing services provided in a patient's home to treat an illness or injury.

Terminal Illness

A disease or condition that is expected to lead to death because it cannot be cured or effectively treated.

Personal Re-Examination

The act of reflecting on and reassessing one's life decisions, beliefs, or behaviors, often leading to personal growth or change.

Disintegration

The process of breaking down or decomposing into parts or elements, often resulting in the loss of cohesion or unity.