Homework answers / question archive / Nolan Company has two segments: Audio and Video

Nolan Company has two segments: Audio and Video

Accounting

Share With

Nolan Company has two segments: Audio and Video. Sales for the Audio Segment were P500,000, and variable costs were 40% of sales. The Video Segment also had sales of P500,000, but variable costs were 60% of sales. Fixed costs directly traceable to the Audio and Video segments were P150,000 and P120,000, respectively. Common fixed costs of P200,000 were arbitrarily allocated equally to each segment. What was the contribution margin of the Audio Segment? Please Explain.