Johns Company Operates in Three Different Industries Each of Which

Multiple Choice

Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment.Segment No.1 contributed 60 percent of Johns Company's total sales.Sales for Segment No.1 were $500,000 and total variable costs were $400,000.Total common costs for all segments were $320,000.Johns allocates common costs based on the ratio of each segment's sales to the total sales.What should be the contribution margin presented for Segment No.1?

A) $(100,000)
B) $ 8,000
C) $ 20,000
D) $ 100,000