The Following Selected Data Relate to the Cape Breton Division

The following selected data relate to the Cape Breton Division of Eastern Enterprises Inc. (EEI): $\begin{array} { l r } \text { Sales revenue } & \$ 5,680,000 \\\text { Uncontrollable fixed costs traceable to the division } & 1,460,000 \\\text { Allocated corporate overhead } & 690,000 \\\text { Controllable fixed costs traceable to the division } & 1,220,000 \\\text { Variable costs } & 50 \% \text { of revenue }\end{array}$ Required:
A. Compute the following for the Cape Breton Division:
1. Segment contribution margin.
2. Controllable profit margin.
3. Segment profit margin.
4. Which of the three preceding measures should be used when evaluating the Cape Breton Division as an investment of EEI's resources? Why?
5. Assume that management made the decision to prepare a segmented income statement that reflected Cape Breton's five operating departments. Would all $1,220,000 of the controllable fixed costs be easily traced to the departments? Briefly explain.
6. Which of the five-dollar amounts presented in the body of the problem would be used in computing the income before taxes of Eastern Enterprises Inc.?