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:

Virtuous Circle

What occurs when socially responsible behaviour improves financial performance, which leads to more responsible behaviour in the future.

CSR

Corporate Social Responsibility, a business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Socially Responsible Behaviour

Actions by individuals or organizations that contribute to the welfare of society and the environment.

Virtuous Circle

A sequence of events where each one positively influences the next, leading to continuous improvement or beneficial results.