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

---

Definitions:

Consolidated Financial Statements

Financial statements that aggregate the financial position and operating results of a parent company and its subsidiaries.

Intangible Assets

Non-physical assets owned by a business that can produce future economic benefits, such as intellectual property, goodwill, and licenses.

Expected Useful Life

It refers to the estimated duration a fixed asset is expected to be economically useful to the owner, beyond which it is considered to depreciate.

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the reduction of debt through regular payments of principal and interest over a set period.