A company has two divisions, A and B. Division A produces and sells a single product and
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A company has two divisions, A and B. Division A produces and sells a single product and generated $60,000 of total revenue in the current period. The variable costs for division A are $12,000 and the fixed costs are $8,000. Division B produces and sells two products, X and Y. Division B generated $100,000 of total revenue in the current period. The variable costs for product X are $20,000, the variable costs for product Y are $30,000, and the fixed costs are $18,000. Calculate the contribution margin ratio and net income for each division and the company as a whole.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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