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The Following Information Pertains to the Northwest Territory of McDonald

Question 21

Multiple Choice

The following information pertains to the Northwest Territory of McDonald Company:  Net Sales $5,000 Variable costs:  Cost of merchandis e sold 1,200 Operating exp enses 450 Fixed costs:  Controll able by segment manager 600 Controllable by others 250 Unallocated costs 150\begin{array} { l l } \text { Net Sales } & \$ 5,000 \\\text { Variable costs: } & \\\text { Cost of merchandis e sold } & 1,200 \\\text { Operating exp enses } & 450 \\\text { Fixed costs: } & \\\text { Controll able by segment manager } & 600 \\\text { Controllable by others } & 250 \\\text { Unallocated costs } & 150\end{array} The contribution margin is:


A) $3,650
B) $2,500
C) $2,750
D) $3,350

Correct Answer:

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