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undefined Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed
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Shirley Inc. has three divisions, King, West and Gold. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs Profit Margin King $ 987,000 418,000 569,000 386,000 183,000 West $ 579,000 344,600 234,400 212,625 21,775 Gold $ 428,000 300,500 127,500 153,375 $ (25,875 Total $ 1,994,000 1,063,100 930,900 752,000 178,900 Of the fixed costs, $309,000 is for corporate costs and is allocated equally to the three divisions. a. How much does Gold Division have in direct fixed costs? Fixed Costs b. What is Gold Division's segment margin? Segment Margin c. What would Shirley's profit margin be if Gold Division were droppedStep by Step Solution
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