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Segment margin ratio

Compute the segment-margin ratio.

Net sales revenue .. . . . $728,000
Cost of goods sold . . . . 416,000
Selling and administrative costs ..104,000
Advertising cost . . . . . . . . . 62,400
Insurance cost . . . . . . . . . . 82,000

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Net sales revenue .. . . . $728,000
Cost of goods sold . . . . 416,000
Selling and administrative ...

Solution Summary

This explains the Segment margin ratio

$2.19