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9 March, 21:39

Tyler Company has the following information pertaining to its two product lines for last year: Product A Product B Variable selling and admin. expenses $38,000 $31,000 Direct fixed expenses 19,500 34,500 Sales 250,000 210,000 Direct fixed selling and admin. expenses 38,000 22,000 Variable expenses 42,000 31,000 Operating income $112,500 $91,500 Common expenses are $105,000 for the year. What is the segment margin for Product B?

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Answers (2)
  1. 9 March, 21:46
    0
    D. $91,500

    Explanation:

    Answer is calculated below.

    Segment margin for Product B = $210,000 - $31,000 - $34,500 - $22,000 - $31,000 = $91,500
  2. 9 March, 21:53
    0
    Segment margin for Product B is $91,500

    Explanation:

    Segment margin for Product B is calculated as,

    Segment margin of product B = Sales - variable expenses - direct fixed expenses - direct fixed selling and ending expenses

    Segment margin of product = $210,000 - $31,000 - $34,500 - $22,000 - $31,000 = $91,500

    Hence, Segment margin for Product B is $91,500.
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