Wildhorse sells two products: Standard and Deluxe. The company had sales of $822000 during the current year. The company's contribution margin ratio was 40% and total fixed costs totaled $322000. Sales were $615000 for Standard and $207000 for Deluxe. Traceable fixed costs were $172000 for Standard and $110000 for Deluxe. Variable costs were $382000 for Standard and $102000 for Deluxe. What is the segment margin for the Deluxe product? O ($5000) O $5000 O $6800 O $105000

Wildhorse sells two products: Standard and Deluxe. The company had sales of $822000 during the current year. The company's contribution margin ratio was 40% and total fixed costs totaled $322000. Sales were $615000 for Standard and $207000 for Deluxe. Traceable fixed costs were $172000 for Standard and $110000 for Deluxe. Variable costs were $382000 for Standard and $102000 for Deluxe. What is the segment margin for the Deluxe product? O ($5000) O $5000 O $6800 O $105000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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