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Franklin, Incorporated, has two divisions, Seward and Charles. The following is the contribution margin income statement for the previous year:
| Seward | Charles |
Sales revenue | $ 723,000 | $ 723,000 |
Variable costs | 470,450 | 614,550 |
Contribution margin | $ 252,550 | $ 108,450 |
Fixed costs | 122,500 | 122,500 |
Net operating income (loss) | $ 130,050 | $ (14,050) |
Of the total fixed costs, $240,000 are common fixed costs that are allocated equally between the divisions. What is Seward Division's segment margin?
Multiple Choice
$130,050
$250,050
$252,550
$723,000
Answer & Explanation
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