Johns Company Operates in Three Different Industries Each of Which

question 23

Multiple Choice

Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment.Segment No.1 contributed 60 percent of Johns Company's total sales.Sales for Segment No.1 were $500,000 and total variable costs were $400,000.Total common costs for all segments were $320,000.Johns allocates common costs based on the ratio of each segment's sales to the total sales.What should be the contribution margin presented for Segment No.1?

• A)$(100,000)
• B)$ 8,000
• C)$ 20,000
• D)$ 100,000

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Definitions:

Aging Population

denotes an increase in the median age of a population due to declining birth rates and/or increasing life expectancy, posing various societal challenges.

Health Care

The maintenance or improvement of health via the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in people.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, acting as a form of risk management for health care costs.

Uninsured Persons

Individuals lacking health insurance coverage, which often leads to reduced access to healthcare services and can result in financial difficulty in the event of major health issues.