Collegebooks Company has two locations, downtown and on campus. During March, th
ID: 2353591 • Letter: C
Question
Collegebooks Company has two locations, downtown and on campus. During March, the company reported net income of $237,000 and sales of $1.2 million. The contribution margin in the downtown store was $320,000 (32% of sales). The contribution margin in the campus store is $110,000. Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location. How much are total variable costs?A.) $770,000
B.) $853,000
c.) $3,750,000
D.) $192,000
Please show work so I can understand what I did wrong. Thanks for the help!
Explanation / Answer
$3,750,000