A merchandising company has two departments, A and B. A recent monthly income statement for the company follows: Monthly Income Statement Department A Department B Total Sales $3,000,000 $1,000,000 $4,000,000 Less: variable expenses 900,000 400,000 1,300,000 Contribution margin 2,100,000 600,000 2,700,000 Less fixed expenses 1,400,000 800,000 2,200,000 Net income (loss) $700,000 $ (200,000) $500,000 A study indicates that $340,000 of fixed expenses being charged to department B are allocated costs that w