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Seward Charles Sales $832,200 $554,800 Variable Costs 610,420 471,580 Contribution Margin $221,780 $ 83,220 Fixed Costs 115,350 115,350 Profit Margin $106,430 $(32,130) Of the total fixed costs, $130,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped? Multiple Choice

Seward Charles Sales $832,200 $554,800 Variable Costs 610,420 471,580 Contribution Margin $221,780 $ 83,220 Fixed Costs 115,350 115,350 Profit Margin $106,430 $(32,130) Of the total fixed costs, $130,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped? Multiple Choice

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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Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Seward Charles Sales $832,200 $554,800 Variable Costs 610,420 471,580 Contribution Margin $221,780 $ 83,220 Fixed Costs 115,350 115,350 Profit Margin $106,430 $(32,130) Of the total fixed costs, $130,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped? Multiple Choice $832,200 $41,430 $221,780 $106,430
Transcribed Image Text:Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Seward Charles Sales $832,200 $554,800 Variable Costs 610,420 471,580 Contribution Margin $221,780 $ 83,220 Fixed Costs 115,350 115,350 Profit Margin $106,430 $(32,130) Of the total fixed costs, $130,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped? Multiple Choice $832,200 $41,430 $221,780 $106,430
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