Reardon Retail Company Consists of Two Stores, a and B

question 82

Multiple Choice

Reardon Retail Company consists of two stores, A and B. Store A had sales of $80,000 during March, a contribution margin ratio of 30%, and a segment margin of $11,000. The company as a whole had sales of $200,000, a contribution margin ratio of 36%, and segment margins for the two stores totaling $31,000. If net operating income for the company was $15,000 for the month, the traceable fixed expenses in Store B must have been:

• A) $16,000
• B) $20,000
• C) $31,000
• D) $28,000

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