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First Fleet Company is a two-division firm and has the following information available for this year: Common fixed costs $400,000 Direct fixed costs of Division
First Fleet Company is a two-division firm and has the following information available for this year:
Common fixed costs | $400,000 |
Direct fixed costs of Division A | 100,000 |
Direct fixed costs of Division B | 200,000 |
Sales revenue of Division A | 600,000 |
Sales revenue of Division B | 900,000 |
Variable costs of Division A | 120,000 |
Variable costs of Division B | 180,000 |
What is Division A's contribution margin?
A. | $ 450,000 | |
B. | $(120,000) | |
C. | $ 480,000 | |
D. | $ 420,000 |
What is Division B's division segment margin?
A. | $280,000 | |
B. | $220,000 | |
C. | $180,000 | |
D. | $520,000 |
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