ABC Company has two sales areas: North and South. During last year, the contribution margin in the North was $40,000, or 20% of sales. The segment margin in the South was $10,000, or 8% of sales. Traceable fixed costs were $15,000 in the North and $12,000 in the South. During last year, the company reported total operating income of $25,000.

What were the total fixed costs (traceable and common) for ABC Company for the year? (2 marks)

What were the variable costs for the North area for the year? (2 marks)