Gosnell Company produces two products: squares and circles. The projected income for the coming year, segmented by product line, follows : Squares Circles Total Sales $300,000 $2,500,000 $2,800,000 Less: Variable expenses 100,000 500,000 600,000 Contribution margin $200,000 $2,000,000 $2,200,000 Less: Direct fixed expenses 28,000 1,500,000 1,528,000 Product margin $ 172,000 $ 500,000 $ 672,000 Less: Common fixed expenses 100,000 Operating income $ 572,000 The selling prices are $30 for squares and $50 for circles