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Segment Margin

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Martin Company is a two-division firm and has the following information available for this year:

Common fixed costs $400,000
Direct fixed costs of Division A 100,000
Direct fixed costs of Division B 200,000
Sales revenue of Division A 400,000
Sales revenue of Division B 600,000
Variable costs of Division A 120,000
Variable costs of Division B 180,000

What is Division A's division segment margin? Choose the correct answer
$280,000
$180,000
$(80,000)
$400,000

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The expert calculates division segment margin.

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Martin Company is a two-division firm and has the following information available for this year:

Common fixed costs           $400,000
Direct fixed costs of Division A 100,000
Direct fixed costs of ...

Purchase this Solution


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