Apps M MGMT-131-SB01D) Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The company's contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total Company Cloth Leather Sales R 4,500,000 R 2,500,000 R 2,000,000 2,024,800 1,090,000 934,800 Variable expenses Contribution margin Traceable fixed expenses 2475.200 1,410,000 1,065.200 821,000 570,000 430,000 340,000 128,000 391,000 230,000 127,000 Advertising Selling and administrative Depreciation Total traceable fixed expenses Divisional segment margin Common fixed expenses Operating income 1,646,000 898.000 748,000 829.200 R 512,000 R 317,200 403,000 R 426,200 Top management can't understand why the Leather Division has such a low segment margin when its sales are only 20% less than sales in the Cloth Division As one step in isolating the problem, management has directed that the Leather Division be further segmented into product lines. The following information is available on the product lines in the Leather Division 0 Type here to search