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30 November, 17:44

Canada Company had the following operating data for the year for its computer division: sales, $650,000; contribution margin, $140,000; total fixed costs (controllable), $100,000; and average total operating assets, $280,000. What is the controllable margin for the year

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  1. 30 November, 21:04
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    Controllable margin for the year = $40,000

    Explanation:

    Given:

    Sales = $650,000

    Contribution margin = $140,000

    Total fixed costs (controllable) = $100,000

    Average total operating assets = $280,000

    Controllable margin for the year = ?

    Computation of Controllable margin for the year:

    Controllable margin for the year = Contribution margin - Total fixed costs (controllable)

    Controllable margin for the year = $140,000 - $100,000

    Controllable margin for the year = $40,000
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