Question 39

Reference: 11-02

Canon Company has two sales areas: North and South. During last year, the contribution margin in the North was $50,000, or 20% of sales. The segment margin in the South was $15,000, or 8% of sales. Traceable fixed costs were $15,000 in the North and $10,000 in the South. During last year, the company reported total operating income of $26,000.

What were the total fixed costs (traceable and common) for Canon Company for the year?

Question 39 options:

A)

$49,000.

B)

$24,000.

C)

$25,000.

D)

$50,000.