Canon Company has two sales areas: North and South. During last year, the contribution margin in the North Area was $85,000, or 20% of sales. The segment margin in the South was $22,000, or 8% of sales. Traceable fixed expenses are $22,000 in the North and $17,000 in the South. During last year, the company reported total net operating income of $39,000.

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

$236,000

$398,000

$313,000

$107,000