Carroll Company Has Two Product Lines, Q and P

question 1

Multiple Choice

Carroll Company has two product lines, Q and P. During June, the company's net operating income was £25,000, and the common fixed expenses were £37,000. The contribution margin ratio for Q was 30%, its sales were £200,000, and its segment margin was £21,000. If the contribution margin for P was £80,000, the segment margin for P was

• A)£62,000.
• B)£59,000.
• C)£62,000
• D)£41,000.

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Primary School

An educational institution for children, typically aged five to eleven, providing the initial stage of compulsory education in many countries.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Fallacy of Composition

The logical error of assuming what is true of a part is also true for the whole.