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Problem 1: Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60 percent of Johns Company's total sales. Sales for Segment No. 1 were 600,000 dollars and variable costs were 400,000 dollars. The total common costs for all segments were 320,000 dollars. Johns allocates common costs based on the ratio of each segment's sales to total sales. What should be the contribution margin presented for Segment No. 1?
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