Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous...
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Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Myrtle $560,500 $336,700 Laurel Total Sales $897,200 Variable Costs 176,700 174,500 351,200 Contribution Margin Fixed Costs (allocated) 383,800 162, 200 546,000 284,875 171, 225 456,100 Profit Margin $98,925 $ (9,025) $ 89,900 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice $72.300 loss $98,925 profit $383,800 profit $89,900 profit Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Myrtle $560,500 $336,700 Laurel Total Sales $897,200 Variable Costs 176,700 174,500 351,200 Contribution Margin Fixed Costs (allocated) 383,800 162, 200 546,000 284,875 171, 225 456,100 Profit Margin $98,925 $ (9,025) $ 89,900 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice $72.300 loss $98,925 profit $383,800 profit $89,900 profit
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Related Book For
Principles of Managerial Finance
ISBN: 978-0133507690
14th edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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