Data for September for Mossman Corporation and Its Two Major

question 1

Multiple Choice

Data for September for Mossman Corporation and its two major business segments, North and South, appear below: In addition, common fixed expenses totaled $319,000 and were allocated as follows: $160,000 to the North business segment and $159,000 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) $211,000
• B) $51,000
• C) $259,000
• D) $121,000

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales, calculated as sales divided by the average net fixed assets.

Book Value

The net value of a company's assets found on its balance sheet, and is calculated by subtracting liabilities from the total value of assets.

Trade-In Allowance

The amount credited to a customer for the trade-in of a used item towards the purchase of a new item.

Book Value

The net value of an asset reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs.