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Division Sales and Managerial Accounting

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Channing Company has two divisions, S and T. The company's overall contribution margin ratio is 30% when sales in the two divisions total 750,000. If variable expenses are 450,000 in Division S, and if Division S's contribution margin ratio is 25%, then sales in Division T must be:

300,000
75,000
225,000
150,000

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Solution Summary

The solution explains how to calculate the sales of a division given contribution margin ratio and total sales.

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