Question

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $22,500, and the common fixed expenses were $49,000. The contribution margin ratio for Product Q was 40%, its sales were $134,000, and its segment margin was $41,000. If the contribution margin for Product P was $39,000, the segment margin for Product P was:

Answer 1

Answer:

The segment margin for Product P = $41,000

Step-by-step explanation:

Total Segment Margin = Net Operating Income + common fixed expenses

= $ 25,000 + $ 37,000

= $ 62,000

Total Segment Margin = Segment Margin of Q + Segment Margin of P

$ 62,000 = $ 21,000 + Segment Margin of P

or Segment Margin of P = $ 62,000 - $ 21,000

= $ 41,000