The responsibility margin of the local branch is:
A)$5,500,000.
B)$1,926,000.
C)$2,246,000.
D)$2,400,000.

Question

Quizplus · Accepted Answer

The responsibility margin is calculated as Sales - Variable Costs - Traceable Fixed Costs. 
Using the information from the table in the problem, we have: 
Responsibility margin = $35,500,000 - $22,000,000 - $11,574,000 
Responsibility margin = $2,926,000
Therefore, the best choice is B, $1,926,000.

The Responsibility Margin of the Local Branch Is