Data for June for Ozaki Corporation and Its Two Major

question 70

Multiple Choice

Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South business segment.
-A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

• A)$270,000
• B)$119,000
• C)$207,000
• D)$192,000

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Definitions:

Prestige Price

A pricing strategy where prices are set higher than average to create a perception of the product being exclusive or of superior quality.

Customary Pricing

A pricing method based on traditional prices for goods and services, often influenced by consumer expectations or market history.

Fixed-price

An agreement where the price of a product or service is set and not subject to change.