Required information

Ieso Company has two stores: J and K. During November, Ieso Company reported operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses were $60,000 in Store J, and $40,000 in Store K.

What were the total variable expenses in Store K?

Multiple Choice

• $70,000.
• $110,000.
• $130,000.
• $200,000.