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

---

Definitions:

Medical Advice

Recommendations or guidance provided by healthcare professionals based on medical knowledge to aid in decision making regarding a person’s health.

Chronic Diseases

Long-lasting health conditions that may not be cured but can be managed through treatment and lifestyle changes.

CDC

The Centers for Disease Control and Prevention, a national public health institute in the United States, focused on protecting public health and safety through control and prevention of disease.

Deaths

The end of life in organisms; the permanent cessation of all vital functions and signs.