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The management accountant for Healthy Foods has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total Sales
The management accountant for Healthy Foods has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total Sales $80,000 $120,000 $60,000 $220,000 121,000 36,000 65,000 20,000 Variable expenses Contribution margin 44,000 55,000 40,000 99,000 Other costs 18,000 21,000 8,000 47,000 Segment margin 26,000 34,000 32,000 52,000 3,000 3,000 8,000 31,000 29,000 44,000 Allocated avoidable costs 2.000 Segment income 24,000 Allocated corporate costs 7,000 Corporate profit $17,000 7,000 _ 7,000 21,000 $ 24,000 $ 22,000 $ 23,000 department should receive the advertising dollars. Assume an advertising campaign could increase revenues for any of the products by $15,000. To maximize corporate profits, the Assume the cost of the advertising campaign is less than the revenues it generates. O a. Fish & Meat O b. From the information given, the correct product line cannot be determined O c. Produce O d. Sundries
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