Stryker Corporation Has Two Major Business Segments-East and West

question 86

Multiple Choice

Stryker Corporation has two major business segments-East and West. In April, the East business segment had sales revenues of $500,000, variable expenses of $280,000, and traceable fixed expenses of $80,000. During the same month, the West business segment had sales revenues of $970,000, variable expenses of $514,000, and traceable fixed expenses of $184,000. The common fixed expenses totaled $280,000 and were allocated as follows: $112,000 to the East business segment and $168,000 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:

• A)$108,000
• B)$28,000
• C)$140,000
• D)$280,000

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Definitions:

Geographic Location

Refers to the specific physical place where something is located, often considered in terms of its environment, features, and accessibility.

Retention Bonuses

Financial incentives offered to employees as an enticement to stay with the company for a specified period.

Employee Growth Opportunities

Prospects or avenues for personal and professional development offered to employees by employers.

Shareholder Value

The value delivered to shareholders of a corporation due to management's ability to increase sales, earnings, and free cash flow.