Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed expenses were $54,000. The contribution margin ratio for Product Q was 40%, its sales were $139,000, and its segment margin was $46,000. If the contribution margin for Product P was $44,000, the segment margin for Product P was: Multiple Choice $33,000 $46,000 $8,000 $79,000

Respuesta :

Answer:

The Segment Margin of P is $79,000

Explanation:

Given

Product Q Contribution Margin Ratio = 40%

Sales of Product Q = $139,000

Segment margin of Product Q = $46,000

Net operating income = $25,000

Common fixed expenses = $54,000

Product P Contribution Margin = $44,000

Using the following formula, we'll calculate the segment margin for product P

Net Operating Income = Segment Margin of P - Common Fixed Expense

Substituting each values

$25,000 = Segment Margin of P - $54,000

Collect like terms

Segment Margin of P = $25,000 + $54,000

Segment Margin of P = $79,000