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Bostrum, Inc. has two divisions, Williams and Anana. Following is the income statement for the previous year: Williams Anana Sales $600,000 $400,000 Variable Costs 195,000
Bostrum, Inc. has two divisions, Williams and Anana. Following is the income statement for the previous year:
Williams | Anana | |
Sales | $600,000 | $400,000 |
Variable Costs | 195,000 | 250,000 |
Contribution Margin | $405,000 | $150,000 |
Fixed Costs | 175,000 | 170,000 |
Profit Margin | $230,000 | $-20,000 |
Of the total fixed costs, $200,000 are common fixed costs that are allocated equally between the divisions. What is Williams segment margin?
a. | $150,000 | |
b. | $330,000 | |
c. | $600,000 | |
d. | $1,200,000 |
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