Question

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

Answer 1

Controllable margin for the year = $40,000

Step-by-step 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