Knowledge Check 01 Max, Incorporated, has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division? O $100,000 O $200,000 O $300,000 O $400,000 Knowledge Check 02 Bovine Corporation has two divisions: televisions and mobile phones. The mobile phone division has a contribution margin of $600,000. The company's common fixed costs and total traceable fixed costs are $100,000 and $500,000 respectively. Assuming the traceable fixed costs of the television division are $300,000, what is the segment margin of the mobile phone division? O $100,000 O $200,000 O $300,000 O $400,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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Knowledge Check 01
Max, Incorporated, has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable
fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division?
$100,000
$200,000
$300,000
$400,000
Knowledge Check 02
Bovine Corporation has two divisions: televisions and mobile phones. The mobile phone division has a contribution margin of
$600,000. The company's common fixed costs and total traceable fixed costs are $100,000 and $500,000 respectively. Assuming the
traceable fixed costs of the television division are $300,000, what is the segment margin of the mobile phone division?
$100,000
$200,000
$300,000
O $400,000
Transcribed Image Text:Knowledge Check 01 Max, Incorporated, has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division? $100,000 $200,000 $300,000 $400,000 Knowledge Check 02 Bovine Corporation has two divisions: televisions and mobile phones. The mobile phone division has a contribution margin of $600,000. The company's common fixed costs and total traceable fixed costs are $100,000 and $500,000 respectively. Assuming the traceable fixed costs of the television division are $300,000, what is the segment margin of the mobile phone division? $100,000 $200,000 $300,000 O $400,000
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