Insider Corporation has two divisions, J and K. During March, the contribution margin in Division J was $30,000. The contribution margin ratio in Division K was 40%, its sales were $125,000, and its segment margin was $32,000. The common fixed expenses in the company were $40,000, and the company's net operating income was $18,000. The segment margin for Division J was:
A)$26,000
B)$32,000
C)$8,000
D)$58,000

Question

Quizplus · Accepted Answer

The segment margin for Division J is $26,000. This can be calculated by subtracting the contribution margin of Division J ($30,000) from the common fixed expenses ($40,000) and then adding the segment margin of Division K ($32,000).

Insider Corporation Has Two Divisions, J and K