Variable costs as a percentage of sales for Craig, Inc., are \( 69 \% \), current sales are \( \$ 600,000 \), and operating income is \( \$ 72,000 \). What is the amount of fixed costs? a. \( \$ 114,000 \) b. \( \$ 186,000 \) c. \( \$ 300,000 \) d. \( \$ 528,000 \)

To find the amount of fixed costs for Craig, Inc., we can use the given information. First, let's calculate the total variable costs: Variable Costs = Sales × Variable Costs Percentage Variable Costs = \( 600,000 × 0.69 = 414,000 \) Now, we can determine the total costs by adding the operating income to the variable costs: Total Costs = Variable Costs + Fixed Costs Total Costs = \( 414,000 + \text{Fixed Costs} \) We also know that: Operating Income = Sales - Total Costs So, rearranging gives us: Fixed Costs = Sales - Variable Costs - Operating Income Fixed Costs = \( 600,000 - 414,000 - 72,000 = 114,000 \) Thus, the fixed costs amount to \( \$ 114,000 \). The correct answer is a. \( \$ 114,000 \).