Whole Company Department A Department B Sales Revenue 1,000,000 600,000 400,000 Less: Variable Expenses Variable manufacturing COGS 400,000 220,000 180,000 Variable Selling and Administrative Cost 130,000 70,000 60,000 Total Variable Expenses 530,000 290,000 240,000 Contribution Margin 470,000 310,000 160,000 Less: Traceable fixed expenses Factory Supervision Cost 90,000 50,000 40,000 Fixed Costs controllable by others 120,000 70,000 50,000 Divisional Segment Marg 260,000 190,000 70,000 Less: Common fixed expenses not traceable to the individual divisions President's Salary 100,000 Net operating Income 160,000