Question
A Company's income statement for June is given below: TotalDivision F Division L Sales$490,000 $308,000 $182,000 Variable expenses 235,480166,320 69,160 Contribution margin254,520 141,680 112,840 Traceable
A Company's income statement for June is given below: TotalDivision F Division L Sales$490,000 $308,000 $182,000 Variable expenses 235,480166,320 69,160 Contribution margin254,520 141,680 112,840 Traceable fixed exp135,60061,400 74,200 Segment margin118,920$80,280 $38,640 Common fixed exp 40,400 Net operating income$78,520 During June, the sales clerks in Division F received salaries totaling $39,800. Assume that during July the salaries of these sales clerks are discontinued and instead they are paid a commission of 19% of sales. If sales in Division F increase by $43,000 as a result of this change, the July segment margin for Division F should be: $49,870 or $84,870 or $124,470 or $73,170
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