COST ACCOUNTING
TRANSFER PRICING
Question
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Segment X generated sales revenue of P 250, 000 and variable operating expenses of P 112, 500. Its controllable fixed expenses were P 25, 000. It was assigned 40% of P 125, 000 of fixed cost controlled by others. The common fixed costs were P 16, 000. What was Segment X’s controllable segment profit margin?
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P 46, 500
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P 63, 500
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P 112, 500
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P 137, 500
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Explanation:
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