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Ring. Incorporated's income statement for the most recent month is given below. Sales Variable expenses. Contribution margin Traceable fixed expenses Segment margin..... Common fised expenses
Ring. Incorporated's income statement for the most recent month is given below. Sales Variable expenses. Contribution margin Traceable fixed expenses Segment margin..... Common fised expenses Net operating income Total $600,000 384.000 216,000 152.000 64,000 34.000 $ 30,000 Store P $200,000 144,000 56,000 42.000 $ 14,000 Store Q $400,000 240,000 160,000 110.000 $ 50,000 .. .. ******** For each of the following questions, refer back to the original data. If sales in Store Q increase by $30,000 as a result of a $7,000 increase in traceable fixed costs: Store Q's contribution margin should increase by $18,000 Store Q's segment margin should increase by $12,000 Store Q's contribution margin should increase by $11,000 Store Q's segment margin should increase by $5,000
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