If sales in Store Q increase by $30,000 as a result of a $7,000 increase...
90.2K
Verified Solution
Link Copied!
Question
Accounting
If sales in Store Q increase by $30,000 as a result of a $7,000 increase in traceable fixed costs:
A)
Store Q's contribution margin should increase by $18,000.
B)
Store Q's segment margin should increase by $12,000.
C)
Store Q's contribution margin should increase by $11,000.
D)
Store Q's segment margin should increase by $5,000.
Answer: D
why is D show the process.
Ring, Incorporated's income statement for the most recent month is given below Total $600,000 384,000 216,000 Store P 200,000$400,00o 144,000 56,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 240,000 160,000 42,000 152,0005,000 110,000 64.000$14,000 34,000 $ 30,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
