The Book Rack Has Two Locations, Downtown and on Campus

Multiple Choice

The Book Rack has two locations, downtown and on campus.During March, the company reported net income of $164,000 and sales of $1.2 million.The contribution margin in the downtown store was $320,000 (32% of sales) .The contribution margin in the campus store is $110,000.Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location.How much are total variable costs?

A) $953,000
B) $770,000
C) $680,000
D) $430,000