Errera Corporation Has Two Major Business Segments-Retail and Wholesale

question 152

Essay

Errera Corporation has two major business segments-Retail and Wholesale. In July, the Retail business segment had sales revenues of $100,000, variable expenses of $54,000, and traceable fixed expenses of $16,000. During the same month, the Wholesale business segment had sales revenues of $920,000, variable expenses of $386,000, and traceable fixed expenses of $156,000. Common fixed expenses totaled $269,000 and were allocated as follows: $156,000 to the Retail business segment and $113,000 to the Wholesale business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

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Definitions:

Specificity

The ability of a test to correctly identify those without the disease (true negative rate).

Negative Predictive Value

is the proportion of negative test results that are truly negative, indicating how well a test identifies individuals who do not have a disease.

High Sensitivity

The capability of an assessment to accurately detect individuals who have the disease (true positive rate).

Low Specificity

A characteristic of a diagnostic test that indicates a high likelihood of false positives, meaning it often indicates a disease or condition is present when it is not.