The Gasson Company sells three products, Product A, Product B and Product C, and
ID: 2435401 • Letter: T
Question
The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled $350,000. Sales were: Product A, $500,000; Product B, $300,000; and Product C, $200,000. Traceable fixed costs were: Product A, $120,000; Product B, $100,000; and Product C, $60,000. The variable expenses of Product A were $300,000 and the variable expenses of Product B were $180,000.The product line segment margin for Product A for June was: 1) $200,000.
2) $80,000.
3) $65,000.
4) $10,000.
Explanation / Answer
Prod. B
Revenue $300,000
Variable cost $180,000
___________
Contribution $120,000
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