Stryker Corporation Has Two Major Business Segments-East and West

question 155

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 net operating income of the company as a whole is:

• A)$412,000
• B)$676,000
• C)-$148,000
• D)$132,000

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Definitions:

Infundibulum

The funnel-like end of the uterine tube near an ovary. It catches the secondary oocyte as it leaves the ovary.

Vestibular Glands

Glands located near the vaginal opening that provide lubrication, also known as Bartholin's glands.

Bulbourethral Gland

A small gland in males that produces a fluid to lubricate and neutralize the acidity of the urethra prior to ejaculation.

Prostate Gland

A gland in the male reproductive system that surrounds part of the urethra and produces a fluid that forms part of semen.