Assume a company with two divisions (A and B) prepared the following segmented income statement:     A B       Total   Sales   $ ?     $ 200,000     $ ?   Variable expenses     120,000       140,000       260,000   Contribution margin     ?       ?       ?   Traceable fixed expenses     100,000       80,000       180,000   Segment margin   $ ?     $ (20,000 )     ?   Common fixed expenses                     50,000   Net operating income                   $ 10,000     What is Division A’s contribution margin?   Multiple Choice   $140,000   $180,000   $160,000   $200,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Assume a company with two divisions (A and B) prepared the following segmented income statement:
 

  A B       Total  
Sales   $ ?     $ 200,000     $ ?  
Variable expenses     120,000       140,000       260,000  
Contribution margin     ?       ?       ?  
Traceable fixed expenses     100,000       80,000       180,000  
Segment margin   $ ?     $ (20,000 )     ?  
Common fixed expenses                     50,000  
Net operating income                   $ 10,000  
 

What is Division A’s contribution margin?

 

Multiple Choice
  •  
    $140,000
  •  
    $180,000
  •  
    $160,000
  •  
    $200,000
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