Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement for the previous year: Seward Charles Sales revenue $ 945,600 $ 630, 400 Variable costs 693,680 504, 320 Contribution margin $ 251,920 $ 126,080 Fixed costs 138, 550 138,550 Net operating income (loss) $ 113,370 $ (12,470) Of the total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward Division's segment margin?

Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement for the previous year: Seward Charles Sales revenue $ 945,600 $ 630, 400 Variable costs 693,680 504, 320 Contribution margin $ 251,920 $ 126,080 Fixed costs 138, 550 138,550 Net operating income (loss) $ 113,370 $ (12,470) Of the total fixed costs, $270,000 are common fixed costs that are allocated equally between the divisions. What is Seward Division's segment margin?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Seward Charles Sales $ 744,500 $ 744,500 Variable Costs 476,950 670,050 Contribution Margin $ 267,550 $ 74,450 Fixed Costs 124,400 124,400 Profit Margin $ 143,150 $ (49,950) Of the total fixed costs, $240,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped? A) $143,150 B) $267,550 C) $23,150 D) $744,500
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