Ieso Company has two stores: J and K. During November, Ieso Company reported 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 were $60,000 in Store J, and $40,000 in Store K.
-What were Ieso Company's total fixed expenses for the year?
A) $40,000.
B) $100,000.
C) $140,000.
D) $170,000.

Question

Quizplus · Accepted Answer

The total fixed expenses are the sum of the rent, salaries, and insurance, which is $140,000 ($60,000 + $50,000 + $30,000).

Ieso Company Has Two Stores: J and K