Question
Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Seward Charles Sales $ 892,800 $ 595,200 Variable
Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year:
| Seward | Charles | |||||
| Sales | $ | 892,800 | $ | 595,200 | ||
| Variable Costs | 624,840 | 476,160 | ||||
| Contribution Margin | $ | 267,960 | $ | 119,040 | ||
| Fixed Costs | 136,650 | 136,650 | ||||
| Profit Margin | $ | 131,310 | $ | (17,610 | ) | |
Of the total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward's segment margin?
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Audit And Assurance Study Text
Authors: Get Through Guides
1st Edition
1848080255, 978-1848080256
