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What is the segment margin for the deluxe product

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Reference no: EM133030426

Question - Oriole sells two products: Standard and Deluxe. The company had sales of $816000 during the current year. The company's contribution margin ratio was 40% and total fixed costs totaled $306000. Sales were $614000 for Standard and $202000 for Deluxe. Traceable fixed costs were $166000 for Standard and $106000 for Deluxe. Variable costs were $376000 for Standard and $112000 for Deluxe. What is the segment margin for the Deluxe product?

a. $90000

b. $16000

c. ($16000)

d. $20400

Reference no: EM133030426

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