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Canon Company has two sales areas: North and South. During last year, the contribution margin in the North was $50,000, or 20% of sales. The segment margin in the South was $15,000, or 8% of sales. Traceable fixed costs were $15,000 in the North and $10,000 in the South. During last year, the company reported total operating income of $26,000.
Problem 1: What were the total fixed costs (traceable and common) for Canon Company for the year?
A) $49,000.
B) $24,000.
C) $25,000.
D) $50,000.
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