Cervetti Corporation Has Two Major Business Segments-East and West

question 153

Multiple Choice

Cervetti Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $220,000, variable expenses of $125,000, and traceable fixed expenses of $29,000. During the same month, the West business segment had sales revenues of $890,000, variable expenses of $472,000, and traceable fixed expenses of $169,000. The common fixed expenses totaled $246,000 and were allocated as follows: $123,000 to the East business segment and $123,000 to the West business segment. The contribution margin of the West business segment is:

• A)$418,000
• B)-$57,000
• C)$513,000
• D)$66,000

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, marked by significant technological advancements and changes in manufacturing processes.

Early Years

The initial stages or period of existence of a person, organization, or phenomenon.

Century

A period of one hundred years.

Gross Savings Rate

The total level of savings within an economy expressed as a percentage of total income.