Question

Segment Margin is the income generated by​ subtracting: A. only common fixed expenses from a​ segment’s...

Segment Margin is the income generated by​ subtracting:

A.

only common fixed expenses from a​ segment’s contribution margin

B.

all fixed expenses from a​ segment’s contribution margin

C.

only direct fixed expenses from a​ segment’s contribution margin

D.

all expenses from a​ segment’s sales revenue

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Answer #1
Option C is the answer

Segment margin

= Segment contribution margin - Direct fixed expenses of the segment  

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