12. The Keystone Company has two divisions, A and B. Assume the following data for

The Keystone Company

The total traceable and common fixed expenses for the Keystone Company is:

$26,000

Explanation:

a) Data and Calculations:

Divisions                      A              B            Total

Sales                      $45,000    $80,000   $125,000

Variable expenses   60%          80%

Variable expense   27,000      64,000         91,000

Contribution          $18,000    $16,000       $34,000

Traceable fixed

 expense                13,000       2,000          15,000

Common fixed expense                                  ?

Total net income     5,000       14,000           8,000

The common fixed expense = $11,000

Total traceable and common fixed expenses = $26,000 ($34,000 - 8,000)