The Gasson Company sells three products, Product A, Product B and Product C, and had sales of $1,000,000 during the month of June. The company's overall contribution margin ratio was 37% and fixed expenses totaled $350,000.
Sales were:
Product A.............$500,000
Product B.............$300,000
Product C.............$200,000
Traceable fixed costs were:
Product A.............$120,000
Product B.............$100,000
Product C...............$60,000
The variable expenses of Product A were $300,000 and the variable expenses of Product B were $180,000.
The contribution margin in dollars for Product B for June was:
1) $20,000
2) $111,000
3) $120,000
4) $200,000