The Book Rack Has Two Locations, Downtown and on Campus

question 83

Multiple Choice

The Book Rack has two locations, downtown and on campus.During March, the company reported net income of $164,000 and sales of $1.2 million.The contribution margin in the downtown store was $320,000 (32% of sales) .The contribution margin in the campus store is $110,000.Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location.How much are total variable costs?

• A)$953,000
• B)$770,000
• C)$680,000
• D)$430,000

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