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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
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