Raven Corporation has two divisions: Urban and Rural. Last month, the company reported a contribution margin of $60,000 or 30% contribution margin ratio for Urbans Division, Rural Division had a contribution margin ratio of 40% with sales of $300,000. Net operating income for the company was $40,000 after subtracting the common fixed cost of $60,000. The controller of Raven is arguing that the Urban Division should be closed down, because Urban is showing a loss of $2,000. To calculate divisions' net operating incomes, the controller allocated the common fixed cost to the two divisions according to their sales dollars. 15 Is the controller's argument to close the Urban Division right or wrong? Why? A. The controller is right in that Raven's net operating income will increase by $2,000 if they eliminate the Urban Division B. The controller is wrong because the Urban Division's segment margin is $22,000. C. The controller is wrong because the Urban Division's segment margin is $20,000. D. The controller is right because the Urban Division has a lower contribution margin ratio than the Rural Division E. The controller is wrong because the Urban Division's contribution margin is $60,000