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Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500

Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500
Transcribed Image Text:Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500
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