Measuring Performance Using Segment and Contribution Margins El Pico Company has two divisions: Maya and Aztec. During 2009, they had the following operating data:

1. Compute each division’s contribution and segment margins, and the contribution each makes to overall company profits.
2. Interpretive Question: Based on only the financial information given, should either division be discontinued? Why?

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Maya Division Aztec Division Revenue $100,000 $120,000 Fixed costs: Costs unique to the division 50,000 45,000 Costs allocated by corporate headquarters 11,000 10,000 Variable costs per unit... 4 Unit sales price of division's product 10 4 8