ABC inc. has 2 divisions. Contribution margins for division A & B were $180000 and...

80.2K

Verified Solution

Question

Accounting

ABC inc. has 2 divisions. Contribution margins for division A & B were $180000 and $80000 respectively. Division A has a contribution margin ratio of 50% while division B has a contribution margin ratio of 50%. Total fixed costs were $100000 of which $20000 were common fixed costs. The remaining fixed costs were allocated as follows: 40% to Division A and 60% to Division B. what was division A's segment margin?

a. $148,000

b. $ 30,000

c. $36,000

d. $32,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students