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Solution Library
Calculation Of Common Fixed Expenses For Two Plants
Question
Johnson Company operates two plants, Plant A and Plant B. Last year, Johnson Company reported a contribution margin of $40,200 for Plant A. Plant B had sales of $204,000 and a contribution margin ratio of 45%. Net operating income for the company was $31,400 and traceable fixed expenses for the two stores totaled $52,800. Johnson Company's common fixed expenses were:
a. $47,800
b. $52,800
c. $100,600
d. $132,000
Summary
The question belongs to Accounting and it discusses about calculation of common fixed expenses for two plants owned by a company.
Total Word Count 28
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