Question

Moss Corp. reported the following items for 2016:

Controllable fixed costs$77,000
Contribution margin122,000
Interest expense20,000
Variable costs80,000
Total assets$925,000
Compute the controllable margin for 2016.
Controllable Margin______$

Answer 1

Controllable Margin = $ 45,000

Step-by-step explanation:

Controllable Margin = Contribution margin - Controllable fixed costs

Contribution margin = $ 122,000

Less Controllable fixed costs = $77,000

Controllable Margin = $ 45,000