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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?
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