Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500

Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a contribution margin ratio of 25% and a combined segment margin totaling$35,000. District A had sales of $90,000 during May, a contribution margin ratio of45%, and a segment margin of $16,000. If the net operating income of Davison Inc. for May is $12,000, the traceable fixed expenses in District B must have been: * $49,000 O $24,500 O $23,000 O $40,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...

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