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

question 271

Multiple Choice

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment.
-A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

• A) $294,000
• B) $422,000
• C) $132,000
• D) ($30,000)

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Definitions:

Operationalized

The process of defining a research variable in practical, measurable terms, allowing it to be quantitatively or qualitatively captured.

Postsale Problems

Postsale Problems refer to issues or complaints customers experience with a product or service after the purchase has been made, necessitating support or resolution.

Possession

The act of owning or the state of being owned, denoting the control a person or entity has over an object, property, or asset.

Commission System

is a compensation method where employees or agents are paid based on the value of the sales or deals they make, intended to motivate higher performance.