14. Hatch Company has two divisions, O and E. During the year just ended, Division O had a segment margin of $9,000 and variable expenses equal to 70% of sales. Traceable fixed expenses for Division E were $19,000. Hatch Company as a whole had a contribution margin ratio of 40%, common fixed expenses of $10,000, a new operating income of $15,000, and sales of $200,000. Given this data, the sales for Division E for last year were: A. $50,000 B. $150,000 C. $87,500 D. $116,667 E. None of the above

14. Hatch Company has two divisions, O and E. During the year just ended, Division O had a segment margin of $9,000 and variable expenses equal to 70% of sales. Traceable fixed expenses for Division E were $19,000. Hatch Company as a whole had a contribution margin ratio of 40%, common fixed expenses of $10,000, a new operating income of $15,000, and sales of $200,000. Given this data, the sales for Division E for last year were: A. $50,000 B. $150,000 C. $87,500 D. $116,667 E. None of the above

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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