Ferrar Corporation Has Two Major Business Segments: Consumer and Commercial

question 26

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.
-A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

• A) $164,000
• B) $62,000
• C) $394,000
• D) $184,000

---

Definitions:

Temporal Bone

A paired bone located at the sides and base of the skull, playing a key role in protecting the brain and supporting the facial structures.

Parietal Bone

One of the two bones forming the sides and roof of the cranium.

Lambdoid

Refers to the lambdoid suture, a dense, fibrous connective tissue joint that unites the parietal bones with the occipital bone in the human skull.

Coronal

Pertaining to the frontal plane that divides the body into anterior and posterior (front and back) sections.