Tennison Corporation Has Two Major Business Segments-Consumer and Commercial

question 119

Multiple Choice

Tennison Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for May appear below: In addition, common fixed expenses totaled $371,000 and were allocated as follows: $186,000 to the Consumer business segment and $185,000 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)$272,000
• B)$270,000
• C)$86,000
• D)$514,000

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