Reference no: EM132016950

Question - 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