Keller Company Is Evaluating Its Two Divisions,North Division and South

question 104

Multiple Choice

Keller Company is evaluating its two divisions,North Division and South Division.Data for the North Division include sales of $250,000,variable costs of $125,000,and fixed costs of $200,000,50 percent of which are traceable to the division.Data for the South Division include sales of $300,000,variable costs of $175,000,and fixed costs of $225,000,60 percent of which are traceable to the division.
-Divisional income (or segment margin) for South Division is

• A)$(100,000).
• B)$(75,000).
• C)$(10,000).
• D)$125,000.