If sales in Store Q increase by $30,000 as a result of a $7,000 increase in traceable fixed costs:

A)

Store Q's contribution margin should increase by $18,000.

B)

Store Q's segment margin should increase by $12,000.

C)

Store Q's contribution margin should increase by $11,000.

D)

Store Q's segment margin should increase by $5,000.

Answer: D

why is D show the process.

Ring, Incorporated's income statement for the most recent month is given below Total $600,000 384,000 216,000 Store P 200,000$400,00o 144,000 56,000 Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income 240,000 160,000 42,000 152,0005,000 110,000 64.000$14,000 34,000 $ 30,000