Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed expenses were $37,000. The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000. If the contribution margin for Product P was $80,000, the segment margin for Product P was:

$62,000

$59,000

$62,000

$41,000

Question

Business

Aryana Burns

17 April, 08:50

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed expenses were $37,000. The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000. If the contribution margin for Product P was $80,000, the segment margin for Product P was:

$62,000

$59,000

$62,000

$41,000

+3

Answers (1)

Know the Answer?

Ismael Hudson · Answer 1

Option (d) is correct.

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