Question

March Corporation is a general contractor with two divisions: Interior Renovations and Exterior Renovations. Each division has an on-site supervisor who is paid a salary of $165,000 annually and one salaried estimator who is paid $90,000 annually. The corporate office has two office administrative assistants who are paid salaries of $75,000 and $55,000 annually. The president's salary is $200,000. How much of these salaries are common fixed expenses? You must enter your answer in the following format: $x,xxx

Answer 1

Common fixed expense salaries =

Corporate office administrative assistant salaries =

$75000 + $55000 = $130000

President's salary = $200000

Total = $330000

Note = Corporte office expenditure are common expenditures irrespective of any division. They are not division specific.

Salaries paid irrespective of number of months, production or sales is a fixed expense. It is to be paid whether any production or sales takes place or not.