City Retail Sells Two Products: Standard and Deluxe

question 49

Short Answer

City Retail sells two products: Standard and Deluxe.The company had sales of $800,000 during the current year.The company's contribution margin ratio was 40% and total fixed costs totaled $300,000.Sales were $600,000 for Standard and $200,000 for Deluxe.Traceable fixed costs were $150,000 for Standard and $90,000 for Deluxe.Variable costs were $360,000 for Standard and $120,000 for Deluxe.What is the segment margin for the Standard product?
a.$20,000
b.$80,000
c.$90,000
d.$240,000

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Definitions:

Ratifies

Formally confirms or approves an agreement or treaty, making it officially valid.

Bound

Obligated by law or duty to do something; being in a state of obligation.

Implied Authority

Powers not explicitly stated but inferred from a person's position or conduct, allowing them to perform tasks necessary to effectively execute their duties.

Legal Effect

The consequence(s) a law or regulation imposes on an individual's rights, duties, or privileges.