Question - Collegebooks Company has two locations, downtown and on campus. During March, the company reported net income of $237,000 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) $770,000
b) $3,750,000
c) $192,000
d) $853,000