Canon Company has two sales areas: North and South. During last year, the contribution margin in the North Area was $125,000, or 20% of sales. The segment margin in the South was $30,000, or 8% of sales. Traceable fixed expenses are $30,000 in the North and $25,000 in the South. During last year, the company reported total net operating income of $55,000.

The variable expenses for the South Area for the year were:

$465,000

$590,000

$155,000

$320,000