Question 1
Ruhlen Corporation's Small Craft division reported a net operating loss of $2,300,000 in the most recent reporting period. The division absorbed common fixed corporate expenses of $2,500,000. The division's segment margin is
◦ $(2,300,000).
◦ $4,800,000.
◦ $(2,500,000).
◦ $200,000.
Question 2
In the most recent reporting period, Athens Corporation's Legion division generated net revenues of $2,000,000 and variable expenses of $700,000. Direct fixed expenses were $500,000 and common corporate fixed expenses were $250,000. What is the division's segment margin?
◦ $800,000
◦ $550,000
◦ $1,300,000
◦ $1,050,000