U.S.Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000.
West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000.
U.S.Products' total fixed expenses during July was $200,000.
U.S.Products' common fixed expenses for July are:
A)$80,000.
B)$84,000.
C)$120,000.
D)$200,000.

Question

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The Answer of U.S.Products operates two divisions with the following sales and expense information for the month of July: East Division: Sales $240,000; Contribution margin ratio 35%, Direct fixed expenses $48,000.
West Division: Sales $160,000; Contribution margin ratio 50%, Direct fixed expenses $32,000.
U.S.Products' total fixed expenses during July was $200,000.
U.S.Products' common fixed expenses for July are:
A)$80,000.
B)$84,000.
C)$120,000.
D)$200,000.

USProducts Operates Two Divisions with the Following Sales and Expense