Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement for the previous year: Seward Charles Sales revenue $ 945,600 $ 630, 400 Variable costs 693,680 504, 320 Contribution margin $ 251,920 $ 126,080 Fixed costs 138, 550 138,550 Net operating income (loss) $ 113,370 $ (12,470) Of the total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward Division's segment margin?
Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement for the previous year: Seward Charles Sales revenue $ 945,600 $ 630, 400 Variable costs 693,680 504, 320 Contribution margin $ 251,920 $ 126,080 Fixed costs 138, 550 138,550 Net operating income (loss) $ 113,370 $ (12,470) Of the total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward Division's segment margin?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement
for the previous year: Seward Charles Sales revenue $ 945,600 $ 630,400 Variable costs 693,680 504, 320 Contribution
margin $ 251,920 $ 126,080 Fixed costs 138, 550 138,550 Net operating income (loss) $ 113,370 $ (12,470) Of the
total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward
Division's segment margin?
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