The next two questions are based on the following: Vulcan Company has two.divisions Northern and Southen. Last month, the company reported variable expenses of $35,000 or 70% variable ex penseratio fo r Northern Division a contribution margin ratio of. 405% with sales of $150.000. Net operating income for the compary was $27.200 sher subtracting the common fixed , sout of $12,800. 4 Vulcan Company's traceable fixed costs are (the sum of traceable A. B. C. D. E. $35,000 $47,800 $20,000 $40,000 toh 35900To None of the above Sole Cm the common fix show ing a loss of $700. To calculate divisions' net operating incomes, the controller allocated to the two divisions according to their sales dollars. Is the controller's argument to close the Northern Division right or wrong? Why? 5 The controller of Vulcan is arguing that the Northern Division should be closed down, because the divison isesost contoller is htin that Vulean's net operating income will increase by $700 if they eliminate the Northern controller is right because the Northern Division has a lower contribution margin ratio than Southern A. The controller is wrong because the Northern Division's segment margin is s2.so0 he controller is wrong because the Northern Division's segment margin is S1,800, Division. Division. The controlter is wrong because the Northern Division's contribution margin is Si5,000. D. The E