Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month Talbot Heather Total $280,000 $168,000 $448,000 Sales Variable Costs 168,000 235,000 213,000 67,000 Contribution Margin 112,000 112,500 101,000 67,500 Fixed Costs (allocated) 180,000 Profit Margin (500) $ 33,500 $ 33,000 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable?

Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month Talbot Heather Total $280,000 $168,000 $448,000 Sales Variable Costs 168,000 235,000 213,000 67,000 Contribution Margin 112,000 112,500 101,000 67,500 Fixed Costs (allocated) 180,000 Profit Margin (500) $ 33,500 $ 33,000 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable?

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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Vikram Bhai
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