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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. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:
Personal Property
Movable properties such as furniture, vehicles, electronics, not fixed to one location, unlike real property like land or buildings.
Moveable Items
Objects that can be transported from one place to another without altering their essence or property.
Real
Pertaining to something genuine, authentic, or having physical existence as opposed to being imaginary.
Trespass to Land
A tort law term referring to the unlawful entry onto land by a person without the permission of the owner or legal authority.
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