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Chang Corporation Has Two Divisions, T and W

Question 322

Multiple Choice

Chang Corporation has two divisions, T and W. The company's overall contribution margin ratio is 40%, with sales in the two divisions totaling $900,000. If variable expenses are $200,000 in Division T and if Division W's contribution margin ratio is 20%, the sales in Division W must be:


A) $200,000
B) $425,000
C) $700,000
D) $340,000

Correct Answer:

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