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Question 1: Core Company has two divisions: L and M. During July, the contribution margin in Division L was $60,000. The contribution margin ratio in Division M was 40%, and its sales were $250,000. Division M's segment margin was $60,000. The common fixed expenses were $50,000, and the company operating income was $20,000. What was the segment margin for Division L?
Multiple Choice
Option 1: $0.
Option 2: $10,000.
Option 3: $50,000.
Option 4: $60,000.
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