Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $60,000 for Division A. Division B had a contribution margin ratio of 40% and its sales were $300,000. Net operating income for the company was $40,000 and traceable fixed expenses were $80,000. Corbel Corporation's common fixed expenses were:

$60,000

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

The contribution margin ratio is the ratio of contribution margin to sales.

For Division B,

Contribution margin = 40% * $300,000

= $120,000

Total contribution margin (from the two divisions)

= $60000 + $120000

= $180,000

Total fixed expenses = $180,000 - $40,000

= $140,000

Common fixed expenses = $140,000 - $80,000

= $60,000