Urban Athletics company has two store locations North and so

Urban Athletics company has two store locations, North and south. During October, the company reported net income of $192,000 on sales of $905,000. Sales in the North store were $680,000 and variable costs in the south store were 60% of sales. The contribution margin in the North store was $204,000. If the total direct costs are $50,000 allocated fixed cost must be

Solution

Calculate allocated fixed cost :

Allocated fixed cost = 294000-192000-50000 = $52000