Question

Leso company has two stores: j and k. during november, ieso company reported 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 were $60,000 in store j, and $40,000 in store k. what were the total sales in store j?

a) $100,000.
b) $150,000.
c) $250,000.
d) $400,000.

Answer 1

Using the provided contribution margin of $100,000, which is 40% of store J's sales, it is calculated that store J's total sales were $250,000.

Step-by-step explanation:

To determine the total sales in store J for the Leso company, we need to use the information provided about the contribution margin. The contribution margin for store J is stated to be $100,000, which is 40% of store J's sales. This means that to find store J's sales, we can set up a proportion where 40% of sales equals the $100,000 contribution margin:

0.40 (Sales) = $100,000

To find the sales figure, we simply divide the contribution margin by the percentage (expressed as a decimal):

Sales = $100,000 / 0.40

Sales = $250,000

Therefore, the total sales in store J were $250,000.