Grown Industries reported the following items for 2016: $$\begin{array} { l r }
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 650,000
\end{array}$$ How much is controllable margin?

Question

Grown Industries reported the following items for 2016: $$\begin{array} { l r } 
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 650,000
\end{array}$$ How much is controllable margin?

Quizplus · Accepted Answer

Controllable margin is calculated by subtracting controllable fixed costs from the contribution margin. Thus, $200,000 (Contribution Margin) - $80,000 (Controllable Fixed Costs) = $120,000.

Grown Industries Reported the Following Items for 2016 How Much Is Controllable Margin? A) $200000 B) $120000 C)

Grown Industries Reported the Following Items for 2016 How Much Is Controllable Margin?
A) $200000
B) $120000
C)