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Question 1: ZZZ Inc. has two divisions. Contribution margins for Divisions A & B were $100,000 and $120,000 respectively. Division A has a contribution margin ratio of 40% while Division B has a contribution margin ratio of 50%. Total fixed costs were $100,000 of which $20,000 were common fixed costs. The remaining fixed costs were allocated as follows: 40% to Division A and 60% to Division B. What was Division B's segment margin?
Option a) $72,000
Option b) $36,000
Option c) $28,000
Option d) $30000
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