Reference no: EM13754161
The following information is available for Pet Store Company and its two divisions, Pet Supplies and Training.
Whole Pet Supplies Training
Company Division Division
Net sales $170,000 $70,000 $100,000
Fixed costs:
Controllable by division managers 16,000 10,000 6,000
Controllable by others 8,000 6,000 2,000
Variable costs:
Cost of merchandise sold 46,000 28,000 18,000
Operating expenses 14,000 8,000 6,000
Unallocated costs 14,000
Required:
A) Compute the contribution margin for the Pet Supplies Division.
B) Compute the contribution controllable by the manager of the Training Division.
C) Compute the contribution by segment for the Training Division.
D) Compute the income before taxes for the whole company.
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