Snow White Company

Sleepy Bashful Doc Total

Sales $300 $500 $900 $1,700

Variable Expenses 120 250 540 910

Contribution Margin $180 $250 $360 $790

Traceable Fixed Expenses 50 80 100 230

Divisional Segment Margin $130 $170 $260 $560

Common Fixed Expenses 390

Net Income (Loss) $170

*All amounts are in thousands of dollars

1. If Sleepys sales increases by $100,000, total company net income will
   1. Increase by $40,000
   2. Increase by $100,000
   3. Increase by $50,000
   4. Increase by $60,000