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Question(s) / Instruction(s):

Data for September for Mossman Corporation and its two major business segments, North and South, appear below:

Sales revenue, North                     $540,000

Variable expense, north               259,000

Traceable fixed expense, North                70,000

Sales revenue, South                     800,000

Variable expense, south               408,000

Traceable fixed expense, South                80,000

In addition, common fixed expenses totaled $319,000 and were allocated as follows: $160,000 to the North business segment and $159,000 to the South business segment.

A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is:

A.            $211,000

B.            $51,000

C.            $259,000

D.            $121,000

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