Homework Answers
segment margin for Fiets.
| sales | 2000 |
| less: variable costs | (800) |
| contribution margin | 1200 |
| less:direct / traceable fixed costs (320+120) | (440) |
| segment margin | 760 |
incremental profit for Fiets =800.
(760 segment margin - (-40 loss))=>800.
should nederlander drop = NO.
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Exercise 20-3
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Gross profit
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Operating expenses
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Net income
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