Franklin, Inc

question 109

Multiple Choice

Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. What would Franklin's profit margin be if Charles were dropped?

• A) $60,000
• B) $80,000
• C) $100,000
• D) $230,000

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