Severo S.A. of Sao Paulo, Brazil, is organized into two divisions. The companys contribution format segmented income statement (in terms of the Brazilian currency, the real, R) for last month is given below: Divisions Total Company Cloth Leather Sales R 3,500,000 R 2,000,000 R 1,500,000 Variable expenses 1,721,000 960,000 761,000 Contribution margin 1,779,000 1,040,000 739,000 Traceable fixed expenses: Advertising 612,000 300,000 312,000