Stryker Corporation Has Two Major Business Segments-East and West

question 35

Multiple Choice

Stryker Corporation has two major business segments-East and West. In April, the East business segment had sales revenues of $500,000, variable expenses of $280,000, and traceable fixed expenses of $80,000. During the same month, the West business segment had sales revenues of $970,000, variable expenses of $514,000, and traceable fixed expenses of $184,000. The common fixed expenses totaled $280,000 and were allocated as follows: $112,000 to the East business segment and $168,000 to the West business segment.
-The contribution margin of the West business segment is:

• A)$456,000
• B)$140,000
• C)$28,000
• D)$676,000

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Definitions:

Black Markets

Illegal trading of goods and services that occurs outside of officially sanctioned channels, often due to laws or regulations.

Price Controls

Legal restrictions on how high or low a market price may go.

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is below the market equilibrium price, leading to shortages.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using less fuel and emitting fewer pollutants than traditional cars.