Mid-Atlantic Communications, Inc. has two divisions (Individual and Business) and has the following information available...
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Mid-Atlantic Communications, Inc. has two divisions (Individual and Business) and has the following information available for the current year: $4,000,000 6,000,000 2.200,000 3,250,000 Sales revenue- Individual Sales revenue- Business Variable costs - Individual Variable costs- Business Direct fixed costs, Individual 500,000 Direct fixed costs, Business 650,000 Allocated fixed costs - Individual 350,000 Allocated fixed costs Business 450,000 Unallocated common fixed costs 250,000 The following information is available for the Business Division, which has two product lines (Land and Mobile): $3,500,000 2,500,000 1,850,000 1,400,000 375,000 Sales revenue Land Sales revenue Mobile Variable costs - Land Variable costs - Mobile Direct fixed costs - Land Direct fixed costs - Mobile 275,000 Allocated fixed costs- Land 275,000 Allocated fixed costs - Mobile 175,000 Unallocated common fixed costs 185,000 The product margin for Land is: Select one: A. $1,100,000 O B. $925,000 O C. $1,275,000 D. $1,650,000
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