Magenta Company Has Two Divisions That Produce Two Different Products

Multiple Choice

Magenta Company has two divisions that produce two different products. Following is information pertaining to its two divisions for the month of June: $\begin{array}{lll}&\text { Division Gold}&\text { Division Silver }\\\text { Variable selling and administrative expenses } & \$ 30,000.00 & \$ 20,000.00 \\\text { Direct fixed manufacturing expenses } & \$ 12,000.00 & \$ 9,000.00 \\\text { Sales } & \$ 150,000.00 & \$ 120,000.00 \\\text { Direct fixed selling and administrative } & &\\\text { expenses } & \$ 20,000.00 & \$ 15,000.00 \\\text { Variable manufacturing expenses } & \$ 60,000.00 & \$ 50,000.00\\\end{array}$
Common expenses are $8,000 for the month of June.
Compute the segment margin for Division Silver.

A) $30,000
B) $40,000
C) $28,000
D) $26,000