Carroll corporation has two products, q and p. during june, the company's net operating income was $25,000, and the common fixed expenses were $37,000. the contribution margin ratio for product q was 30%, its sales were $200,000, and its segment margin was $21,000. if the contribution margin for product p was $80,000, the segment margin for product p was:

$62,000

$59,000

$62,000

$41,000

Option (d) is correct.

Explanation:

Total Segment Margin = Net Operating Income + common fixed expenses

                                       = $ 25,000 + $ 37,000

                                       = $ 62,000

Total Segment Margin = Segment Margin of Q + Segment Margin of P

$ 62,000 = $ 21,000 + Segment Margin of P

or Segment Margin of P = $ 62,000 - $ 21,000

                                         = $ 41,000

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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