Power Manufacturing recorded operating data for its shoe division for the year. $$\begin{array} { l r }
\text { Sales } & \$ 1,500,000 \
\text { Contribution margin } & 300,000 \
\text { Controllable fixed costs } & 180,000 \
\text { Average total operating assets } & 600,000
\end{array}$$ How much is controllable margin for the year?
A)20%
B)50%
C)$300,000
D)$120,000

Question

Power Manufacturing recorded operating data for its shoe division for the year. $$\begin{array} { l r } 
\text { Sales } & \$ 1,500,000 \
\text { Contribution margin } & 300,000 \
\text { Controllable fixed costs } & 180,000 \
\text { Average total operating assets } & 600,000
\end{array}$$ How much is controllable margin for the year?
A)20%
B)50%
C)$300,000
D)$120,000

Quizplus · Accepted Answer

Controllable margin is calculated as the contribution margin minus controllable fixed costs: $300,000 - $180,000 = $120,000.

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