Two major business segments

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Reference no: EM131208007

Cervetti Corporation has two major business segments-East and West. In July, 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. A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Reference no: EM131208007

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