O'Neill, Incorporated's Segmented Income Statement for the Most Recent Month

question 197

Multiple Choice

O'Neill, Incorporated's segmented income statement for the most recent month is given below. For each of the following questions, refer back to the above original data. If sales in Store B increase by $30, 000 as a result of a $5, 000 increase in traceable fixed expenses:

• A)the contribution margin should increase by $18, 000
• B)the segment margin should increase by $17, 000
• C)the contribution margin should increase by $12, 000
• D)the segment margin should increase by $7, 000

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Definitions:

ADH

Antidiuretic Hormone (ADH), also known as vasopressin, is a hormone that helps regulate water balance in the body by controlling the amount of water reabsorbed by the kidneys.

Diabetes Insipidus

Chronic excretion of large amounts of urine of low specific gravity accompanied by extreme thirst; results from inadequate output of antidiuretic hormone.

ADH

Antidiuretic hormone, a peptide hormone produced by the pituitary gland that regulates water absorption in the kidneys.

Insulin

Protein hormone secreted from the pancreas that increases the uptake of glucose and amino acids by most tissues.