Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60 percent of Johns Company's total sales. Sales for Segment No. 1 were $500,00 . and total variable costs were $400,000 . Total common costs for all segments were $320,000 . Johns allocates common costs based on the ratio of each segment's sales to the
total sales. What should be the contribution margin presented for Segment No. 1?
a. $(100,000)
b. $ 8,000
c. $ 20,000
d. $ 100,000
d
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