Stryker Corporation has two major business segments-East and West. In April, the East business segment...
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Stryker Corporation has two major business segments-East and West. In April, the East business segment had sales revenues of $500,000, variable expenses of $280,000, and traceable fixed expenses of $80,000. During the same month, the West business segment had sales revenues of $970,000, variable expenses of $514,000, and traceable fixed expenses of $184,000. The common fixed expenses totaled $280,000 and were allocated as follows: $112,000 to the East business segment and $168,000 to the West business segment.
10. The contribution margin of the West business segment is:
| A. | $456,000 | |
| B. | $140,000 | |
| C. | $28,000 | |
| D. | $676,000 |
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