The following information is available for Nobelski Books and its two divisions,Textbooks and Tablets.
$\begin{array}{lll}
&\text { Whole }& \
&\text { Company } & \text { textbooks } & \text { tablets }\
\text { Net sales }&\$100,000&\$50,000&\$50,000
\end{array}$
Fixed costs controllable by
$\begin{array}{lll}
\text { Division Manager }&16,500 & 12,500 & 4,000 \
\text { Fixed costs controlled by others }&8,000 & 5,000 & 3,000
\end{array}$
Variable costs:
$\begin{array} { l }
\text {Controllable by segment manager }&24,500&17,500&7,000\ \text {Controllable by others }&16,400&10,000&6,400\ \text {Unallocated costs }&1,000\
\end{array}$

What is the contribution by segment for the Tablets Division?
A) $28,600
B) $29,600
C) $32,600
D) $36,600

Question

The following information is available for Nobelski Books and its two divisions,Textbooks and Tablets.
$\begin{array}{lll}
&\text { Whole }& \
&\text { Company } & \text { textbooks } & \text { tablets }\
\text { Net sales }&\$100,000&\$50,000&\$50,000
\end{array}$
Fixed costs controllable by
$\begin{array}{lll}
\text { Division Manager }&16,500 & 12,500 & 4,000 \
\text { Fixed costs controlled by others }&8,000 & 5,000 & 3,000
\end{array}$
Variable costs:
$\begin{array} { l  }
 \text {Controllable by segment manager }&24,500&17,500&7,000\ \text {Controllable by others }&16,400&10,000&6,400\ \text {Unallocated costs }&1,000\
\end{array}$

What is the contribution by segment for the Tablets Division?
A) $28,600
B) $29,600
C) $32,600
D) $36,600

Quizplus · Accepted Answer

The contribution by segment for the Tablets Division is calculated by subtracting the variable costs and fixed costs controllable by the division manager from the net sales of the Tablets Division. Net sales for Tablets = $50,000 Variable costs (controllable by segment manager + controllable by others) for Tablets = $7,000 + $6,400 = $13,400 Fixed costs controllable by Division Manager for Tablets = $4,000 Contribution by segment for Tablets = Net sales - Variable costs - Fixed costs = $50,000 - $13,400 - $4,000 = $32,600. However, the unallocated costs of $1,000 should also be considered as it is a part of the company's overall expenses. Therefore, the correct contribution after subtracting the unallocated costs is $32,600 - $1,000 = $31,600. It appears there was a mistake in the calculation or the interpretation of the options provided. Based on the calculation, the correct answer should be $31,600, which is not listed among the options. The explanation provided calculates the contribution correctly except for the final step, which should consider the unallocated costs, leading to a conclusion that none of the given options accurately reflects the correct calculation based on the provided data.

The Following Information Is Available for Nobelski Books and Its