Kulp Corporation Has Two Major Business Segments-East and West

question 97

Multiple Choice

Kulp Corporation has two major business segments-East and West. In July, the East business segment had sales revenues of $900,000, variable expenses of $441,000, and traceable fixed expenses of $171,000. During the same month, the West business segment had sales revenues of $450,000, variable expenses of $234,000, and traceable fixed expenses of $45,000. The common fixed expenses totaled $321,000 and were allocated as follows: $180,000 to the East business segment and $141,000 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:

• A) $138,000
• B) $675,000
• C) $459,000
• D) -$183,000

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Definitions:

Carbon Atoms

Carbon atoms are the fundamental building blocks of organic molecules, characterized by their ability to form up to four covalent bonds with other atoms, including other carbon atoms.

Single Bonds

Chemical bonds involving the sharing of one pair of valence electrons between two atoms.

Fats

Organic compounds made of fatty acids and glycerol, serving as a major energy storage form in organisms.

Waxes

A diverse class of organic compounds that are malleable at room temperature, typically derived from plants and animals or synthesized industrially.