Eyestone Corporation has two divisions, A and B. The following data pertain to operations in October: Division A Division B Sales $ 80,000 $ 170,000 Variable expenses as a percentage of sales 60 % 80 % Segment margin $ 10,000 $ 25,000 If common fixed expenses were $17,000, total fixed expenses were:

$ 48,000

Explanation:

Eyestone Corporation

                                  Division A             Division B

Sales                            $ 80,000           $ 170,000

Variable expenses          48,000              136,000

Fixed Expenses                22000               9,000

Segment margin            $ 10,000            $ 25,000

Common Fixed Costs 17,000

Common Fixed Costs are the ones which are not traceable and usually deducted at the end from the total gross profit.

Total Fixed Expenses = Common Fixed Expenses + Variable Fixed Expenses

Total Fixed Expenses = 22000+ 9000 + 17000 = $48000

answer makes less frequent trips to the bank and firms make less frequent price changes;