In the Most Recent Reporting Period,Athens Corporation's Legion Division Generated

question 3

Essay

In the most recent reporting period,Athens Corporation's Legion division generated net revenues of $2,000,000 and variable expenses of $700,000.Direct fixed expenses were $500,000 and common corporate fixed expenses were $250,000.What is the division's segment margin?
a.$550,000
b.$800,000
c.$1,050,000
d.$1,300,000

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Definitions:

Security Income

Usually refers to income derived from investments, such as dividends or interest, but can also refer to guaranteed income sources like pensions or social security benefits.

Straight Commission Plan

A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.

Percentage Commission

A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.

Intrinsic Rewards

The personal satisfaction and enjoyment derived from completing a task or achieving a goal, independent of external rewards or recognition.