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)

$ Answer24,00025,00037,00049,000

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

$ Answer103,000160,000185,000162,500