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Chavez Company has two product lines—M and P. Line M had sales of $200,000 during October,...

Chavez Company has two product lines—M and P. Line M had sales of $200,000 during October, a segment margin of 20%, and traceable fixed expenses of $30,000. The company as a whole had a contribution margin ratio of 30% and $135,000 in total contribution margin. Based on this information, total variable expenses for product P must have been: A)$130,000. B)$155,000. C)$185,000. D)$315,000. show process

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Total Contribution margin $     135,000
CM Ratio 30%
Hence Sale 135000/30% $     450,000
Variable Expense 450000-135000 $     315,000

Variable Expense for M= 200000(100-20%)-traceable 30,000= $ 130,000

Hence Variable Expense for P = $315,000-$130,000= $185,000

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