G+ Company is a division of GHI Company.
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G+ Company is a division of GHI Company. This data pertains to G+ division. Sales amounted to $800,000. Cost of sales is 60% of sales. Other direct expenses of the division amount to 15% of sales. Allocated expenses are $90,000. Interest amounts to 10% of long-term debt. Taxes are 30% of income. Total assets are $500,000 wtih 10% representing short-term and 40% representing long-term debt.
The division's controllable margin amounts to
a) $120,000
b) #150,000
c) $180,000
d) $200,000
e) none of the above
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This solution is comprised of a detailed explanation to answer the division's controllable margin.
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Controllable Contribution Margin
G+ Company is a division of GHI Company. This data pertains to G+ division. Sales amounted to $800,000. Cost of sales is 60% of sales. Other direct expenses of the division amount to 15% of ...
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