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Segment margins Following is the information on Paragon Company’s three product lines PRODUCT LINE 1 2 3 Revenue

Segment margins Following is the information on Paragon Company’s three product lines:

 

PRODUCT LINE

 

1

2

3

Revenue

$7,160,000

$1,900,000

$4,200,000

Variable cost percentage of sales

60%

50%

40%

Other costs

$859,200

$237,500

$693,000

Allocated avoidable corporate costs

$349,000

$156,000

$698,000

Allocated unavoidable corporate costs

$570,800

$206,500

$24,000

Required

(a) Construct a segment margin statement for Paragon Company.

(b) Explain why the segment margins reported for an organization unit must be interpreted carefully.

Jul 01 2020 View more View Less

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