Ferrar Corporation Has Two Major Business Segments: Consumer and Commercial

question 174

Multiple Choice

Ferrar Corporation has two major business segments: Consumer and Commercial. Data for the segments and for the company for March appear below:
In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment.
-The contribution margin of the Commercial business segment is:

• A) $137,000
• B) $184,000
• C) $62,000
• D) $423,000

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Definitions:

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another.

Supply Chain Design

The process of structuring a supply chain to meet the demands of the market, including the selection of suppliers, manufacturers, and distribution centers.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Volume Density

Volume density, in logistics and material science, relates to the mass of an object or substance per unit volume, influencing shipping costs, storage requirements, and handling methods.