A sportswear manufacturer is introducing a new line of sneakers. To introduce the new line, the company must pay out a fixed cos
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Solution :
Particulars
Sales $ $
$
$
Variable expenses 588,000 208000 180000 200000
Contribution margin 912000 192000 420000 300000
Traceable fixed 770,000 240,000 330,000 200,000
expenses
Geographic market 142,000 -$48000 $90000 $100000
segment expenses
Common fixed
expenses not traceable
to geographic markets
Net operating income