Memuru company has the following information pertaining to its two divisions for last year: division x division yvariable selling and admin. expenses $ 90,000 $ 100,000direct fixed expenses 40,000 75,000sales 500,000 600,000direct fixed s& a expenses 45,000 80,000variable expenses 66,000 85,000common expenses are $30,000 for the year. what is the segment margin for division y?
a. $320,000b. $450,000c. $560,000d. $260,000

segment margin for Division Y  = $260,000

so correct option is d. $260,000

Explanation:

given data

                                               Division X          Division Y

Variable and admin exp      $90,000              $100,000

Direct fixed expenses          40,000                    75,000

Sales                                     500,000                  600,000

Direct fixed S&A expenses  45,000                    80,000

Variable expenses                66,000                   85,000

Common expenses = $30,000

to find out

segment margin for Division Y

solution

we get here Segment margin for Y that is express as

Segment margin  = Sales - Variable expenses - Variable selling and admin exp - Direct fixed expenses - Direct fixed selling and admin expenses   1

put here value we get

Segment margin  = $600,000 − $85,000 − $100,000 − $75,000 − $80,000

segment margin for Division Y  = $260,000

so correct option is d. $260,000

answer; institution;

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