The Following Information Pertains to the Northern Division of Johnson $\begin{array} { l } \text {Net Sales }&\$21,000\\\end{array}$

question 77

Multiple Choice

The following information pertains to the Northern Division of Johnson Company:
$\begin{array} { l } \text {Net Sales }&\$21,000\\\end{array}$

Variable Costs:
$\begin{array} { l } \text { Cost of merchandise sold}&7,200\\ \text {Operating expenses }&2,700\\\end{array}$

Fixed costs:
$\begin{array} { l } \text {Controllable by segment manager }&2,400\\ \text {Controllable by others }&1,000\\ \text {Unallocated costs }&7,600\\\end{array}$

The contribution by segment is ________.

• A) $7,100
• B) $7,700
• C) $8,700
• D) $11,100

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Definitions:

Automobile Companies

Businesses involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

International Trade

The exchange of goods and services across international borders or territories, involving the import and export between countries.

Normative Economic Statements

Assertions about economic outcomes or policies that incorporate judgments about what is desirable or undesirable, reflecting values and norms rather than hard facts.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.