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First Fleet Company Is a Two-Division Firm and Has the Following

Question 16

Multiple Choice

First Fleet Company is a two-division firm and has the following information available for this year:
 Common fixed costs $400,000 Direct fixed costs of Division A 100,000 Direct fixed costs of Division B 200,000 Sales revenue of Division A 600,000 Sales revenue of Division B 900,000 Variable costs of Division A 120,000 Variable costs of Division B 180,000\begin{array} { l r } \text { Common fixed costs } & \$ 400,000 \\\text { Direct fixed costs of Division A } & 100,000 \\\text { Direct fixed costs of Division B } & 200,000 \\\text { Sales revenue of Division A } & 600,000 \\\text { Sales revenue of Division B } & 900,000 \\\text { Variable costs of Division A } & 120,000 \\\text { Variable costs of Division B } & 180,000\end{array} What is Division A's contribution margin?


A) $ 420,000
B) $ 450,000
C) $ 480,000
D) $(120,000)

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