Question

Cypgef 252 Corporation has two products, Beautiful and Gorgeous. In the last period, the Cypgef252 Corporation's net operating income was $20,500, and the common fixed expenses were $45,000. (ID#56034) The contribution margin ratio for Product Beautiful was 40%, its sales were $130,000, and its segment margin was $37,000. Q: If the contribution margin for Product Gorgeous was $35,000, what was the segment margin for Product Gorgeous?

A. $28,500
B. $37,000
C. $8,000
D. $65,500

Answer 1

segment margin Gorgeous= $28,500

Step-by-step explanation:

Giving the following information:

Beatiful:

Segment margin= $37,000

Net income= $20,500

Common fixed costs= $45,000

To calculate the segment margin of Gorgeous, we need to use the following formula:

Net income= segment margin Beatiful + segment margin Gorgeous - common fixed costs

20,500= 37,000 + segment margin Gorgeous - 45,000

segment margin Gorgeous= $28,500