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:

Accord and Satisfaction

A legal settlement where an agreement is made to satisfy a debt or claim, followed by the actual performance of this agreement, which discharges the original claim.

Accord and Satisfaction

A legal agreement where a dispute is settled by the parties involved, wherein one agrees to accept less than what's owed and the other agrees to forgive the remainder.

Past Consideration

In contract law, the concept that an act or benefit provided before and independently of a promise does not constitute valid consideration for the promise.

Accord and Satisfaction

A legal contract wherein a dispute is settled by the parties involved agreeing to provide and accept something different than originally owed.