Question

Swifty Corporation recorded operating data for its shoe division for the year. Sales $1900000Contribution margin 480000Controllable fixed costs 180000 Average total operating assets 960000 How much is controllable margin for the year? a) $480000 b) $300000 c) 25% d) 50%

Answer 1

Answer:

b is correct option I did this

Answer 2

Answer: b) $300000

Explanation:

Controllable margin controls revenues and cost to show that an operation  process  is balanced and controlled. To check a  manager's performance, The Controllable margin is evaluated and is defined as the contribution margin minus  the controllable fixed cost.

Given

Controllable fixed cost = $ 180,000

Contribution margin =$480, 000

Controllable margin  =   Contribution margin - Controllable fixed cost

=$480,000- 180,000

= $300,000