Meyer Corporation Has Two Sales Areas: North and South

Multiple Choice

Meyer Corporation has two sales areas: North and South. During April, the contribution margin in the North was $90,000, or 30% of sales. The segment margin in the South was $25,000, or 10% of sales. Traceable fixed expenses were $30,000 in the North and $15,000 in the South. Meyer Corporation reported a total net operating income of $52,000. The variable costs for the South area were:

A) $180,000
B) $210,000
C) $225,000
D) $120,000