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

Question

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

Quizplus · Accepted Answer

The Answer of 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