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Category > Accounting Posted 18 Aug 2017 My Price 7.00

Tennison Corporation

Tennison Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for May appear below:

Sales revenues, Consumer

$970,000

Sales revenues, Commercial

580,000

Variable expenses, Consumer

514,000

Variable expenses, Commercial

267,000

Traceable fixed expenses, Consumer

184,000

Traceable fixed expenses, Commercial

110,000

In addition, common fixed expenses totaled $371,000 and were allocated as follows: $186,000 to the Consumer business segment and $185,000 to the Commercial business segment.

A properly constructed segmented income statement in a contribution format would show that the net operating income of the company as a whole is:

   

A. $769,000
   

B. $104,000
   

C. $475,000
   

D. -$267,000

 

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Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 06:08 PM My Price 7.00

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