Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Genuine Goods has two stores: East and West. During May, Genuine reported a net operating income of $50,000 and sales of $540,000. The contribution margin in Store East was $100,000, or 40% of sales. The segment margin in Store West was $45,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store East, and $40,000 in Store West. Genuine's total fixed expenses for the year were

Sagot :

Answer:

the total fixed expense for the year is $145,000

Explanation:

The computation of the total fixed expense for the year is shown below:

= (Store east fixed expense + store west fixed expense) + ((contribution margin - store east fixed expense) + net operating income - segment margin)

= ($60,000 + $40,000) + (($100,000 - $60,000) + $50,000 - $45,000

= $145,000

hence, the total fixed expense for the year is $145,000

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.