Power Manufacturing recorded operating data for its shoe division for the year. $\begin{array}{lr}
\text { Sales } & \$ 1,500,000 \
\text { Contribution margin } & 300,000 \
\text { Controllable fixed costs } & 180,000 \
\text { Average total operating assets } & 600,000
\end{array}$ How much is controllable margin for the year?
A) 20%
B) 50%
C) $300000
D) $120000

Question

Quizplus · Accepted Answer

Controllable margin is calculated by subtracting controllable fixed costs from the contribution margin. Therefore, controllable margin = $300,000 - $180,000 = $120,000.

Power Manufacturing Recorded Operating Data for Its Shoe Division for the Year