29 November, 11:40

# Memuru Company has the following information pertaining to its two divisions for last year:Division X Division YVariable selling and admin. expenses \$ 90,000 \$ 100,000Direct fixed expenses 40,000 75,000Sales 500,000 600,000Direct fixed S&A expenses 45,000 80,000Variable expenses 66,000 85,000Common expenses are \$30,000 for the year. What is the segment margin for Division Y?a. \$320,000b. \$450,000c. \$560,000d. \$260,000

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1. 29 November, 12:38
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segment margin for Division Y = \$260,000

so correct option is d. \$260,000

Explanation:

given data

Division X Division Y

Variable and admin exp \$90,000 \$100,000

Direct fixed expenses 40,000 75,000

Sales 500,000 600,000

Direct fixed S&A expenses 45,000 80,000

Variable expenses 66,000 85,000

Common expenses = \$30,000

to find out

segment margin for Division Y

solution

we get here Segment margin for Y that is express as

Segment margin = Sales - Variable expenses - Variable selling and admin exp - Direct fixed expenses - Direct fixed selling and admin expenses ... 1

put here value we get

Segment margin = \$600,000 - \$85,000 - \$100,000 - \$75,000 - \$80,000

segment margin for Division Y = \$260,000

so correct option is d. \$260,000