Ask Question
BusinessBusiness
24 March, 14:09

Which of the following equations is used to calculate the segment margin? a. Segment margin = Segment's marginal sales + Step cost + Contribution margin b. Segment margin = Segment's desired profit profit - Target cost + Contribution margin c. Segment margin = Segment's sales revenue - Target cost + Contribution margin d. Segment margin = Segment's sales revenue - Direct fixed costs - Variable costs e. Segment margin = Segment's sales revenue + Direct fixed costs + Contribution margin

+2
Answers (2)
  1. 24 March, 14:12
    0
    d. Segment margin = Segment's sales revenue - Direct fixed costs - Variable costs

    Explanation:

    The segment margin is given by: Segment margin = Segment's sales revenue - Direct fixed costs - Variable costs
  2. 24 March, 14:17
    0
    D) Segment margin = Segment's sales revenue - Direct fixed costs - Variable costs

    Explanation:

    Segment margin is used to measure the profitability of an individual product line or an individual geographic division. Its formula is: segment margin = segment revenues - segment costs (both variable and fixed).

    It is basically used for internal decision making purposes, since you can compare the different segment margins of the company's different product lines or geographic divisions.

    If you want to compare product lines or divisions that have significantly different sizes, you can also use the segment margin ratio:

    segment market ratio = (segment revenue - segment costs) / segment revenues
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following equations is used to calculate the segment margin? a. Segment margin = Segment's marginal sales + Step cost + ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Name four principles of insurance
Answers (1)
7. What three categories of fees does the revised RESPA rule create?
Answers (1)
Name two new developments in the way Americans work.
Answers (1)
Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,200 in income taxes. In this situation, the income tax system is:
Answers (1)
Beall's is a chain of department stores that operates all over Florida. After serving Florida for 100 years, Beall's has learned that different merchandise is needed in order to satisfy the different needs of the customers who live in different
Answers (1)
New Questions in Business
What is the basic formula of the malthus theorem?
Answers (1)
If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about the extent of competition new ways of pleasing customers taking advantage of economies of scale regulatory
Answers (1)
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $480,000, and direct labor costs to be $240,000.
Answers (1)
Samuel is working on his annotated bibliography. While writing his annotations, he copies and pastes materials from his sources into his annotations without using quotation marks. This is
Answers (1)
Vanessa's snowboard manufacturing company has encountered problems with one of its computerized decal makers. Vanessa might get someone from the Maintenance, Installation and Repair Pathway of the Manufacturing career cluster to fix the issue.
Answers (1)
Home » Business » Which of the following equations is used to calculate the segment margin? a. Segment margin = Segment's marginal sales + Step cost + Contribution margin b. Segment margin = Segment's desired profit profit - Target cost + Contribution margin c.
Sign Up Forgot Password?