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Segment margin statement

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Segment Margins - Following is the information on Paragon Company's three product lines:
1 2 3
Revenue $7,160,000 $1,900,000 $4,200,000
Variable Cost % of sales 60% 50% 40%
Other Costs $859,200 $237,500 $693,000
Allocated avoidable cost $349,000 $156,000 $698,000
Allocated unavoidable cost $570,800 $206,500 $24,000

A. Construct segment margin statement for Paragon Company.
b. Explain why the segment margins reported for an organization unit must be interpreted carefully.

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Solution Summary

This explains the steps to compute the segment margin statement.

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Segment Margins - Following is the information on Paragon Company's three product lines:
1 2 3
Revenue ...

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