Nolan Company has two segments: Audio and Video. Sales for the Audio Segment were $500,000 . and variable costs were 40% of sales. The Video Segment also had sales of $500,000 . but variable costs were 60% of sales. Fixed costs directly traceable to the Audio and Video segments were $150,00 . and $120,000 . respectively. Common fixed costs of $200,00 . were arbitrarily allocated equally to each
segment. What was the segment margin of the Video Segment?
a. $200,000
b. $ 80,000
c. $(20,000)
d. $ 150,000
b
Business
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