Question

Ieso Corporation has two stores: J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K. Variable expenses in Store K totaled:a. $200,000b. $70,000c. $110,000d. $130,000Ieso Company's total fixed expenses for the year were:a. $100,000b. $140,000c. $40,000d. $170,000

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

J and K. During November, Ieso Corporation reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.

Store J:

Sales= 250,000

Variable costs= (150,000)

Contribution margin= 100,000

Fixed costs= (60,000)

Segmented margin= 40,000

Store K:

Sales= (30,000/0.15)= 200,000

Variable costs= (200,000 - 70,000)= (130,000)

Contribution margin= (30,000 + 40,000)= 70,000

Fixed costs= (40,000)

Segmented margin= 30,000

Total margin= 40,000 + 30,000= 70,000

Unavoidable fixed costs= (40,000)

Net operating income= 30,000

Total variable costs= 280,000

Total fixed costs= 140,000