Answer:
The Keystone Company
The total traceable and common fixed expenses for the Keystone Company is:
$26,000
Explanation:
a) Data and Calculations:
Divisions A B Total
Sales $45,000 $80,000 $125,000
Variable expenses 60% 80%
Variable expense 27,000 64,000 91,000
Contribution $18,000 $16,000 $34,000
Traceable fixed
expense 13,000 2,000 15,000
Common fixed expense ?
Total net income 5,000 14,000 8,000
The common fixed expense = $11,000
Total traceable and common fixed expenses = $26,000 ($34,000 - 8,000)
