Reference no: EM132755043

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $310,000, variable expenses of $170,000, and traceable fixed expenses of $38,000. During the same month, the West business segment had sales revenues of $980,000, variable expenses of $508,000, and traceable fixed expenses of $187,000. The common fixed expenses totaled $282,000 and were allocated as follows: $141,000 to the East business segment and $141,000 to the West business segment.

Problem 1: A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Multiple Choice

Option 1: $(51,000)
Option 2: $102,000
Option 3: $170,000
Option 4: $(1,000)