Jan Van Voorhis is a florist in Boulder, Colorado. Dividing his clients into two major categories, he provides you with the following income statement. He stresses that, for most florists (including himself), the retail and institutional segments typically account for 40% and 60% of total revenues respectively.

Retail Institutional Total Revenues $400,000 $600.000 $1.000.000 Variable cost 120.000 300,000 420.000 Contribution margin 280.000 300.000 580.000 Traceable fixed costs 175.000 80.000 255.000 Segment margin 105.000 220.000 325.000 Common fixed costs 200.000 Profit before taxes $125.000 O