Question

Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenue $ 810,000 Variable operating expenses 319,000 Fixed expenses: Traceable to A and controllable by A 230,000 Traceable to A and controllable by others 111,000 A's segment profit margin is:

Answer 1

A's segment profit margin is: $151,000

Step-by-step explanation:

Calculation of A's segment profit margin

Sales revenue $ 810,000

Less Variable operating expenses ($319,000)

Controllable Contribution $491,000

Less Fixed expenses:

Traceable to A and controllable by A ($230,000)

Traceable to A and controllable by others ($111,000)

Profit Margin $151,000