If a cost is a common cost of the segments on a segmented income
statement, the cost should:
||not be allocated to the segments.
||be excluded from the income statement.
||be treated as a product cost rather than as a period cost.
||be allocated to the segments on the basis of segment
Anderson Corporation has two major business segments-North and
South. In July, the North business segment had sales revenues of
$220,000, variable expenses of $125,000, and traceable fixed
expenses of $29,000. During the same month, the South business
segment had sales revenues of $890,000, variable expenses of
$472,000, and traceable fixed expenses of $169,000. The common
fixed expenses totaled $246,000 and were allocated as follows:
$123,000 to the North business segment and $123,000 to the South
The contribution margin of the South business segment is: