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Question 12
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Olan Company has two segments: Audio and Video. Sales for the Audio Segment were [tex]$500,000, and variable costs were 40% of sales. The Video Segment also had sales of $[/tex]500,000, but variable costs were 60% of sales. Fixed costs directly traceable to the Audio and Video segments were [tex]$150,000 and $[/tex]120,000,
respectively. Common fixed costs of [tex]$200,000 were arbitrarily allocated equally to each segment. What was the contribution margin of the Audio Segment. O A. $[/tex]50,000
OB. [tex]$300,000 O c. $[/tex]200,000
O D. $150,000
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