Borderbooks Company has two locations, downtown and at a suburban mall. During March, the company reported net

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Question:

Borderbooks Company has two locations, downtown and at a suburban mall. During March, the company reported net income of $271,000 and sales of $1.2 million. The contribution margin in the downtown store was $320,000 (40% of sales). The segment margin in the mall store is $200,000. Direct fixed costs are $85,000 in the downtown store and $98,000 in the mall location.

Total fixed costs (direct and allocated) total:

a. $347,000.

b. $164,000.

c. $183,000.

d. $618,000.