Meyer Corporation Has Two Sales Areas: North and South

question 149

Multiple Choice

Meyer Corporation has two sales areas: North and South. During April, the contribution margin in the North was $90,000, or 30% of sales. The segment margin in the South was $25,000, or 10% of sales. Traceable fixed expenses were $30,000 in the North and $15,000 in the South. Meyer Corporation reported a total net operating income of $52,000. The total sales for Meyer Corporation were:

• A)$983,333
• B)$430,000
• C)$550,000
• D)$480,000

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Definitions:

Farm Land

Land that is used for agricultural purposes, such as growing crops and rearing livestock.

Supply of Corn

The total amount of corn that producers are willing and able to sell at a given price level in a specific period.

Government Subsidies

Financial assistance provided by the government to support businesses, individuals, or economic sectors.

Ethanol

A volatile, flammable, colorless liquid commonly used as a fuel additive and in alcoholic beverages.