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 segment margin of the Consumer business segment is:
A. $272,000
B. $270,000
C. $86,000
D. $514,000
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