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AirStep Shoe Company Has Two Retail Stores, One in Gainesville

Question 54

Multiple Choice

AirStep Shoe Company has two retail stores, one in Gainesville and the other in Orlando. The Gainesville store had sales of $100,000, a contribution margin of 35 percent, and a segment margin of $14,000. The company's two stores have total sales of $250,000, contribution margin of 32 percent, and a total segment margin of $31,000. The contribution margin for the Orlando store must have been:


A) $65,000.
B) $170,000.
C) $105,000.
D) $45,000.

Correct Answer:

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