Johnson Company operates two plants, Plant A and Plant B. Last year, Johnson Company reported a contribution margin of $49,700 for Plant A. Plant B had sales of $296,000 and a contribution margin ratio of 20%. Net operating income for the company was $33,800 and traceable fixed expenses for the two stores totaled $56,100. Johnson Company's common fixed expenses were:

	$19,000
	$56,100
	$75,100
	$108,900

	Total	Plant A	Plant B
Sales			$296,000
Variable expenses
Contribution margin		49,700	?
Traceable fixed expenses	56,100
Segment margin
Common fixed expenses
Net operating income	$33,800

Plant B Contribution margin = Plant B CM ratio × Plant B Sales = 0.20 × $296,000 = $59,200

 

	Total	Plant A	Plant B
Sales			$296,000
Variable expenses
Contribution margin		49,700	59,200
Traceable fixed expenses	56,100
Segment margin
Common fixed expenses
Net operating income	$33,800

 

	Total	Plant A	Plant B
Sales			$296,000
Variable expenses
Contribution margin	108,900	49,700	59,200
Traceable fixed expenses	56,100
Segment margin			?
Common fixed expenses
Net operating income	$33,800

	Total	Plant A	Plant B
Sales			$296,000
Variable expenses
Contribution margin	108,900	49,700	59,200
Traceable fixed expenses	56,100
Segment margin	52,800	$49,700
Common fixed expenses
Net operating income	$33,800

Net operating income = Segment margin - Common fixed expenses

$33,800 = $52,800 - Common fixed expenses

Common fixed expenses = $52,800 - $33,800 = $19,000.