Denray Deli Has Two Locations, Downtown and in the Town

question 23

Multiple Choice

Denray Deli has two locations, downtown and in the town mall.During March, the company reported total net income of $144,000 with sales of $1,200,000.The contribution margin in the downtown store was 30%.The contribution margin in the town mall store is $80,000.Total fixed costs are allocated as $110,000 in the downtown store and $90,000 in the town mall location.How much are sales at the downtown location?

• A)$880,000
• B)$1,146,667
• C)$254,000
• D)None of these answer choices are correct.