# The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin:...

## Question:

The following data relate to Department no. 3 of Tsing Corporation:

Segment contribution margin: $540,000 Profit margin controllable by the segment manager: 310,000 Segment profit margin: 150,000 On the basis of this information, Department no. 3's variable operating expenses are: A.$80,000.

B. $160,000. C.$230,000.

D. \$390,000.

E. not determinable.

## Segment Reporting:

Segment reporting is a requirement for Public companies that consists of disclosures of financial transactions of various operating segments such as departments, divisions or subsidiaries. Generally, a segment occupying 10% or more of the company's total sales is considered a reportable segment.

We have been provided with the data of segment contribution margin, segment profit margin and profit margin controllable by the segment manager. To...

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