Final answer:
To find the total variable expenses for store D, first we determine store G's variable expenses by using its sales and segment margin, and then subtract this from the company's total variable expenses. Store D's variable expenses for March total $127,000.
Step-by-step explanation:
To calculate the total variable expenses for store D for the month of March, we first need to understand the provided information regarding store G and the company as a whole.
Store G had sales of $120,000 and a segment margin of 25%, which implies that the segment margin amount is $120,000 x 25% = $30,000. Since segment margin is sales minus variable expenses and traceable fixed expenses, and given that traceable fixed expenses are $23,000, we can calculate the variable expenses for store G as: $30,000 (segment margin) + $23,000 (traceable fixed expenses) = $53,000.
The company's total contribution margin is $60,000, and the contribution margin ratio is 25%. The total sales for the company can be found by dividing the total contribution margin by the contribution margin ratio: $60,000 / 25% = $240,000.
Now, let's calculate the total variable expenses for the company:
- Total sales for the company: $240,000
- Total variable expenses for the company: $240,000 (total sales) - $60,000 (contribution margin) = $180,000
Since the variable expenses for store G are $53,000, we can deduce the variable expenses for store D: $180,000 (total company variable expenses) - $53,000 (store G variable expenses) = $127,000 (total variable expenses for store D).