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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.

Answer and Explanation:


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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Categories of Business Expenses

from TExES Marketing 6-12 (275): Practice & Study Guide

Chapter 7 / Lesson 5
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