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Question - Gluten Corporation has the following information pertaining to its Century Division for this year:
Century
Fixed manufacturing expenses $65,000
Fixed selling and administrative expenses 56,000
Sales 375,000
Direct manufacturing costs (variable) 88,000
Variable selling and administrative expenses32,000
Corporate expenses allocated to the Century Division $89,000
Calculate the Century Division's contribution margin.
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During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013 they switch back to the FIFO method and the following year switch back to LIFO again.
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