Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 6

Pepper's Automotive produces auto parts for various automotive retailers. Pepper's is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,000,000, variable costs are $300,000, and fixed costs are $400,000. Of the fixed costs, controllable fixed costs are $100,000 and noncontrollable fixed costs are $300,000. What is the controllable margin and total contribution by profit center (CPC)