Outlet A new segment?
Venkman, Inc.'s financial information for the most recent month is given below:
| TOTAL | OUTLET A | OUTLET B | |
| Sales | $1,200,000 | $400,000 | $800,000 |
| Variable Expenses | $768,000 | $288,000 | $480,000 |
| Traceable Fixed Expenses | $304,000 | $84,000 | $220,000 |
| Common Fixed Expenses | $98,000 |
A proposal has been made that will lower variable expenses in Outlet A to 68% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $32,000. If this proposal is implemented, and sales remain constant, what is Outlet A's new segment margin? |
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Sales Venkman, Inc.'s financial information for the most recent month is given below: TOTAL OUTLET A...
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