Cervetti Corporation Has Two Major Business Segments-East and West

question 153

Multiple Choice

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. The contribution margin of the West business segment is:

• A)$418,000
• B)-$57,000
• C)$513,000
• D)$66,000

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Definitions:

Mortgagee

The lender or financial institution that provides the loan in a mortgage agreement.

Mortgagor

The borrower in a mortgage loan agreement, who pledges real property as security for the repayment of the mortgage debt.

Tenancy In Common

Ownership of land by two or more people with equal, undivided interests in it.

Survivor

An individual who remains alive after an event in which others have died, or the person remaining after others have left or been removed from a situation.