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    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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    Solution Preview

    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 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer the division's controllable margin.

    $2.19

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