Denner Corporation Has Two Divisions, a and B

question 123

Multiple Choice

Denner Corporation has two divisions, A and B. The following data pertain to operations in October: If common fixed expenses were $31,000, total fixed expenses were:

• A)$31,000
• B)$62,000
• C)$93,000
• D)$52,000 Division A: Variable expenses = Variable expense ratio × Sales = 0)70 × $90,000 = $63,000 Division B: Variable expenses = Variable expense ratio × Sales = 0)60 × $150,000 = $90,000 Division A: Segment margin = Contribution margin - Traceable fixed expenses $2,000 = $27,000 - Traceable fixed expenses Traceable fixed expenses = $27,000 - $2,000 = $25,000 Division B: Segment margin = Contribution margin - Traceable fixed expenses $23,000 = $60,000 - Traceable fixed expenses Traceable fixed expenses = $60,000 - $23,000 = $37,000 Total fixed expenses = Traceable fixed expenses + Common fixed expenses = $62,000 + $31,000 = $93,000

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Definitions:

Individual Discrimination

Discriminatory actions taken by an individual based on prejudice against another individual or group.

Plantation Owners

Individuals who owned and operated large agricultural estates, historically reliant on slave labor, primarily in the pre-Civil War United States and some tropical colonies.

Racist Beliefs

Ideologies or attitudes that differentiate or judge individuals based solely on their race or ethnicity, often implying superiority of one group over others.

Mental Capacity

The ability of an individual to make informed decisions for themselves, including the ability to understand and weigh information, form judgments, and communicate decisions.