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Keith Company is a two-division firm and has the following information available for this year:

Common fixed costs $ 800,000
Direct fixed costs of Division A 200,000
Direct fixed costs of Division B 400,000
Sales revenue of Division A 800,000
Sales revenue of Division B 1,200,000
Variable costs of Division A 240,000
Variable costs of Division B 360,000

What is Division A's contribution margin?

A) $ 840,000
B) $ 440,000
C) $ 560,000
D) $240,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M942039

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