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.Sales in Store J totaled:
A) $400,000
B) $250,000
C) $150,000
D) $100,000

Question

Quizplus · Accepted Answer

The contribution margin in Store J is given as $100,000, which is 40% of its sales. To find the sales in Store J, divide the contribution margin by the percentage (expressed as a decimal): $100,000 / 0.40 = $250,000.

Ieso Corporation Has Two Stores: J and K