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Pants-inc produces high end pants - here is the information for the upcoming year Pants Shorts Sales $700,000 $520,000 Variable cost fo goods 580,000 400,000

Pants-inc produces high end pants - here is the information for the upcoming year

Pants Shorts

Sales

$700,000 $520,000
Variable cost fo goods 580,000 400,000
direct fixed overhead 20,000 60,000

A sales commission of 5% is paid for each o the 2 product lines. Direct fixed selling and Admin expense was estimated to be $25,000 for the pants and $40,000 for the shorts.

Common fixed overhead for the factory is estimated to be $10,000. Common selling and aminitrative costs were estimated to be $25,000.

1. What is the pants division total contribution margin?

2. What is the shorts division total contribution margin?

3.What is the total company operating income?

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