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Cervetti Corporation Has Two Major Business Segments-East and West

question 100

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. A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

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Definitions:

Line of Flux

Refers to the path that magnetic flux follows within a magnetic field, indicating the direction and strength of magnetic forces.

Conductor

A material that permits the flow of electrical current, often used for making wires and other components in electrical circuits.

Electro-magnetism

A fundamental branch of physics concerned with the electromagnetic force that occurs between electrically charged particles.

Conductor

A material or object that allows the flow of electrical current in one or more directions.