Compute the segment margin reported by Division A in May

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Reference no: EM132622816

Question - LTB, Inc. reported the following income statement information for April:

 

LTB, Inc.

Division A

Division B

Sales

$420,000

$240,000

$180,000

Variable costs

$226,200

$156,000

$70,200

Traceable fixed costs

$105,600

$48,000

$57,600

Common fixed costs

$69,000

 

 

In May, LTB, Inc. initiated an advertising campaign in Division A costing $14,630. As a result, the sales in Division A increased by 18% in May.

Required -

Part A) Compute the segment margin reported by Division A in May?

Part B) Compute the segment margin reported by Division B in May?

Reference no: EM132622816

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