Direction Corp. has two divisions: West and East. East division has two sub-divisions: Southeast and...
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Direction Corp. has two divisions: West and East. East division has two sub-divisions: Southeast and Northeast. East division has a total fixed cost of $2 million, with $0.8 traceable to Southeast sub-division and $0.5 million traceable to Northeast sub-division. Southeast sub-division has sales of $5 million and segment margin of $0.4 million. Northeast sub-division has sales of $7 million and segment margin of $0.5 million. What is the segment margin of East division? What is the total variable cost of East Division? (Please provide step-by-step on how to drive the final answer; otherwise, no point will be given.)
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