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 total direct costs are $50,000 allocated fixed cost must be:
Allocated fixed cost must be:
Contribution Margin-Direct Costs-Allocated fixed costs= Net Income
Allocated Fixed costs= Contribution ...
Response provides the steps to calculate allocated fixed cost