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2 November, 04:24

U. S. Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000. West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000. U. S. Products' total fixed expenses during July was $200,000. The East Division's segment margin for July is:a. $36.000b.$40.000c.$80.000d.$84.000

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  1. 2 November, 07:14
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    East division segment margin = Contribution margin - Direct fixed expense

    Contribution margin = $240,000*35% = $84,000

    Direct fixed expenses = $48,000

    So segment margin is 84,000 - 48000 = $36000

    Answer is option A
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