Consider the Following Portion of a Segmented Income Statement for the Year

question 21

Multiple Choice

Consider the following portion of a segmented income statement for the year just ended.Assume that the fixed expenses of Division X include $30,000 of direct expenses and that the discontinuance of the department will not affect the sales of the other departments nor reduce the common expenses. What is X's divisional segment margin?

• A) $(10,000)
• B) $40,000
• C) $10,000
• D) $100,000

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Definitions:

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