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Davidson Company consists of two districts, A and B. During July, the company as a whole had sales of $300,000, a contribution margin ratio of
Davidson Company consists of two districts, A and B. During July, the company as a whole had sales of $300,000, a contribution margin ratio of 20%, and a segment margin totaling $25,000. District A had sales of $80,000 during July, a contribution margin ratio of 35%, and a segment margin of $10,000. If the net operating income of Davidson Company for July was $11,000, the traceable fixed costs in District B must have been A. $17,000 B. $18,000 C. $52,000 D. $14,000
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