Nolan Company Has Two Segments: Audio and Video

question 17

Multiple Choice

Nolan Company has two segments: Audio and Video.Sales for the Audio Segment were $500,000,and variable costs were 60% of sales.The Video Segment also had sales of $500,000,but variable costs were 60% of sales.Fixed costs directly traceable to the Audio and Video segments were $150,000 and $120,000,respectively.Common fixed costs of $200,000 were arbitrarily allocated equally to each segment. ​
What was the contribution margin of the Audio Segment.

• A)$50,000
• B)$300,000
• C)$200,000
• D)$150,000

Recognize how market equilibrium is achieved and the implications of deviations from equilibrium.

Evaluate the effects of technological advancements on supply.

Understand the role of price in signaling information within financial markets.

Grasp the influence of external factors like natural disasters and input costs on market supply.

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Definitions:

Demand for Dollars

Refers to the global desire or need for U.S. currency, driven by its use in international trade, investment, and as a reserve currency.

Balance of Payments Surplus

A situation where the total of the payments received from abroad exceeds the total of the payments made to abroad.

FX Reserves

Short for foreign exchange reserves; assets held on reserve by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy.