Question

Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation: 16,900
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $4
ounie Corporation has two divisions: the South Division and the West Division. The corporations net operating income is $96
Carroll Corporation has two products, Q and P. During June, the companys net operating income was $27,000, and the common fi
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Answer #1

Net operating income of company = $27,000

Common fixed expenses = $58,000

Segment margin of product Q = $50,000

Contribution margin of product P = $48,000

Segment margin of product P = ?

Segment margin of company = Net operating income of company + Common fixed expenses

= 27,000+58,000

= $85,000

Segment margin of company = Segment margin of product Q + Segment margin of product P

85,000 = 50,000 + Segment margin of product P

Segment margin of product P = $35,000

First option is correct option.

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