Arrow is a chain of used car dealers with showrooms in Lincoln, Derby, and Sheffield and a separate Head Office. The management accountant is reviewing the profitability of each showroom. The rent and staff costs incurred by each showroom can be saved in the event of closure. Marketing costs are allocated to each showroom, but would not be saved, if any shop were to close. Head office cost is charged at a rate of 7% of sales. The data regarding costs and sales revenues for each showroom are presented below. What is the contribution margin for each showroom, as ordered in the table above? 1. 134 18 -62 2. 229 107 34 3. 250 135 46 4. 179 40 -44
Arrow is a chain of used car dealers with showrooms in Lincoln, Derby, and Sheffield and a separate Head Office. The management accountant is reviewing the profitability of each showroom. The rent and staff costs incurred by each showroom can be saved in the event of closure. Marketing costs are allocated to each showroom, but would not be saved, if any shop were to close. Head office cost is charged at a rate of 7% of sales. The data regarding costs and sales revenues for each showroom are presented below. What is the contribution margin for each showroom, as ordered in the table above? 1. 134 18 -62 2. 229 107 34 3. 250 135 46 4. 179 40 -44
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Arrow is a chain of used car dealers with showrooms in Lincoln, Derby, and Sheffield and a separate Head Office. The
What is the contribution margin for each showroom, as ordered in the table above?
1. 134 18 -62
2. 229 107 34
3. 250 135 46
4. 179 40 -44
Transcribed Image Text:Lincoln
1,500
Derby
1,375
Sheffield
1,230
1,184
Sales
Cost of sales
Rent of showroom
Showroom staff salaries
Marketing costs
1,250
50
1,240
67
78
21
28
12
45
22
18
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