Ieso Company Has Two Stores: J and K

question 40

Multiple Choice

Ieso Company has two stores: J and K. During November, Ieso Company reported a net operating income of $30,000 and sales of $450,000. The contribution margin in Store J was $100,000, or 40% of sales. The segment margin in Store K was $30,000, or 15% of sales. Traceable fixed expenses are $60,000 in Store J, and $40,000 in Store K.
-Ieso Company's total fixed expenses for the year were:

• A) $40,000
• B) $100,000
• C) $140,000
• D) $170,000

---

Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.