Clemmens Corporation Has Two Major Business Segments: Consumer and Commercial

question 76

Multiple Choice

Clemmens Corporation has two major business segments: Consumer and Commercial.Data for the segments and for the company for August appear below: In addition,common fixed expenses totaled $265,000 and were allocated as follows: $135,000 to the Consumer business segment and $130,000 to the Commercial business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Consumer business segment is:

• A)$152,000
• B)$76,000
• C)$17,000
• D)$179,000

---

Definitions:

Scatter Plot

A graphical representation using dots to show the relationship between two quantitative variables, with each axis representing one of the variables.

Y-intercept

The point where a line or curve crosses the y-axis of a graph, indicating the value of the dependent variable when all independent variables are zero.

Regression Equation

A statistical method for estimating the relationships among variables, often used for predicting the value of a dependent variable based on the values of one or more independent variables.

Linear Regression

A statistical method for modeling the relationship between a dependent variable and one or more independent variables using a linear equation.