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E 6-11 Measuring Performance Using Segment and Contribution Margins El Pico Company has two divisions: Maya and Aztec. During 20X2, they had the following
E 6-11 Measuring Performance Using Segment and Contribution Margins El Pico Company has two divisions: Maya and Aztec. During 20X2, they had the following operating data: Maya Aztec Division Division Revenue $115,000 $135,000 Fixed costs: Costs unique to the division 50,000 55,000 Costs allocated by corporate headquarters 11,000 10,000 Variable costs per unit Unit sales price of division's product 10 40 12 52 STUKENT 1. Compute each division's contribution and segment margins, and the contribution each makes to overall company profits. 2. Interpretive Question: Based on only the financial information given, should either division be discontinued? Why?
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