Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,270,000, variable costs are $426,000, and fixed costs are $517,000. Of the fixed costs, controllable fixed costs are $118,000 and noncontrollable fixed costs are $399,000. What are the controllable margin and total contribution by profit center (CPC), respectively?
Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,270,000, variable costs are $426,000, and fixed costs are $517,000. Of the fixed costs, controllable fixed costs are $118,000 and noncontrollable fixed costs are $399,000. What are the controllable margin and total contribution by profit center (CPC), respectively?
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
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Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,270,000, variable costs are $426,000, and fixed costs are $517,000. Of the fixed costs, controllable fixed costs are $118,000 and noncontrollable fixed costs are $399,000.
What are the controllable margin and total contribution by profit center (CPC), respectively?
multiple choice
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Controllable margin: $726,000; CPC: $445,000
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Controllable margin: $844,000; CPC: $327,000
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Controllable margin: $844,000; CPC: $118,000
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Controllable margin: $726,000; CPC: $327,000
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