M Company has two sales areas: North and South. During April, the contribution margin in the North was P90,000, or 30% of sales. The segment margin in the South was P25,000, or 10% of sales. Traceable fixed expenses were P30,000 in the North and P15,000 in the South. Total net operating income was P52,000. The variable costs for the South area were:     A. P225,000 B. P180,000 C. P120,000 D. P210,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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M Company has two sales areas: North and South. During April, the contribution margin in the North was P90,000, or 30% of sales. The segment margin in the South was P25,000, or 10% of sales. Traceable fixed expenses were P30,000 in the North and P15,000 in the South. Total net operating income was P52,000. The variable costs for the South area were:  
 
A. P225,000
B. P180,000
C. P120,000
D. P210,000
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