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Question - ABC Company operates two divisions with the following sales and expense information for the month of August:
Division 1: sales, $156,000; contribution margin ratio, 50%; direct fixed expenses, $33,000.
Division 2: sales, $107,000; contribution margin ratio, 70%; direct fixed expenses, $20,500.
ABC Company's total fixed expenses during August was $132,400.
Required - Prepare a segmented income statement for ABC Company to determine the segment margin for Divisions 1 and 2 and the operating income for ABC Company.
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