Grown Industries reported the following items for 2022: $\begin{array} { l r }
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 850,000
\end{array}$ How much is controllable margin?

Question

Grown Industries reported the following items for 2022: $\begin{array} { l r } 
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 850,000
\end{array}$ How much is controllable margin?

Quizplus · Accepted Answer

Controllable margin is calculated as Contribution Margin minus Controllable Fixed Costs. So, $200,000 - $80,000 = $120,000.

Grown Industries Reported the Following Items for 2022 How Much Is Controllable Margin? A)$200000 B)$120000 C)$60000 D)$20000

Grown Industries Reported the Following Items for 2022 How Much Is Controllable Margin?
A)$200000
B)$120000
C)$60000
D)$20000