Question

Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $43,100 for Division A. Division B had a contribution margin ratio of 40% and its sales were $201,000. Net operating income for the company was $32,700 and traceable fixed expenses were $56,900. Corbel Corporation's common fixed expenses were: g

Answer 1

Answer:

$33,900

Explanation:

Step 1 Determined the Contribution Margin for Division A and Division B

Division A

Contribution Margin                                     $43,100

Division B

Contribution Margin ($201,000×40%)        $80,400

Step 2 Determine the common fixed expenses from the Total Operating Income

Company

Contribution Margin ($43,100+ $80,400)                $123,500

Less Traceable Fixed Expenses                               ($56,900)

Less Common Fixed Expenses (Balancing figure)  ($33,900)

Net Operating Income                                                 $32,700

Therefore, Corbel Corporation's common fixed expenses were $33,900