1. A company has two divisions, East Division and West Division. During May, the contribution margin in East Division was $300,000. The contribution margin ratio in West Division was 40%, its sales were $500,000, and its segment margin was $130,000. The common fixed expenses in the company were $60,000, and the company's net operating income was $125,000. The segment margin for East Division was _______.

2. Financial statements prepared for internal use to assist management in making decisions must be prepared in accordance with Generally Accepted Accounting Principles (GAAP). True or False?

3.

Maxwell Corporation manufactures toy building sets. For the month of May, Maxwell sold 400,000 sets. Financial information relating to the building sets is shown below: $50 per unit $24 per unit $12 per unit Selling price Cost of goods sold (all variable) Variable selling expense Total fixed selling expense Variable administrative expense Total fixed administrative expense $400,000 $8 per unit $600,000 Gross margin for May is Contribution margin for May is