Johnson Company operates two factories, Plant A and Plant B. Johnson Company reported for the year just ended a contribution margin of £50,000 for Plant A. Plant B had sales of £200,000 and a contribution margin ratio of 30%. Net income for the company was £20,000 and traceable fixed costs for the two plants totalled £50,000. Johnson Company's common fixed costs for last year were: a. £50,000. b. £70,000. c. £40,000. d. £90,000

Johnson Company operates two factories, Plant A and Plant B. Johnson Company reported for the year just ended a contribution margin of £50,000 for Plant A. Plant B had sales of £200,000 and a contribution margin ratio of 30%. Net income for the company was £20,000 and traceable fixed costs for the two plants totalled £50,000. Johnson Company's common fixed costs for last year were: a. £50,000. b. £70,000. c. £40,000. d. £90,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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