Carter Industries Has Two Divisions: the West Division and the East

question 65

Multiple Choice

Carter Industries has two divisions: the West Division and the East Division.Information relating to the divisions for the year just ended is as follows:
$$\begin{array} { | l | r | r | } \hline & \text { West } & \text { East } \\\hline \text { Units produced and sold } & 30,000 & 40,000 \\\hline \text { Selling price per unit } & \$ 8 & \$ 15 \\\hline \text { Variable costs per unit } & 3 & 5 \\\hline \text { Direct fixed cost } & 48,000 & 110,000 \\\hline \text { Common fued cost } & 40,000 & 40,000 \\\hline\end{array}$$
Common fixed expenses have been allocated equally to each of the two divisions.Carter's segment margin for the West Division is:

• A) $150,000.
• B) $102,000.
• C) $30,000.
• D) $110,000.

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