Question

TB MC Qu. 7-77 Corbel Corporation has two divisions: Division A and ... Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,700 for Division A. Division B had a contribution margin ratio of 35% and its sales were $231,000. Net operating income for the company was $27,200 and traceable fixed expenses were $59,700. Corbel Corporation's common fixed expenses were:

Answer 1

Corbel Corporation's common fixed cost is $41,650

Step-by-step explanation:

Division A contribution margin $47,700

Division B contribution Margin $80,850 $128,550

($231,000 * 35%)

Less: Traceable fixed cost $59,700

Operating Income $27,200 ($86,900)

Common fixed cost $41,650