Reference no: EM132560456

The following income statement for Wooton Jewelry Wholesalers is segmented by its two product lines:

                                                                     Diamonds                  Pearls                   Totals

Sales                                                  $700,000               $980,000         $1,680,000

Variable expenses                                    400,000                550,000             950,000

Variable contribution margin                       300,000                  430,000           730,000

Direct controllable fixed expenses                 40,000                    30,000             70,000

Controllable contribution margin                       260,000                  400,000         660,000

Direct noncontrollable fixed expenses                 50,000                  80,000            130,000

Direct contribution margin                                  $210,000             $320,000         530,000

Common corporate expenses                    80,000

Net profit                                           $450,000

Question 1: What dollar figure is most appropriate to evaluate the manager of the Pearls product line? $______________

Question 2: What dollar figure is most appropriate to evaluate the performance of the Pearls product line? $______________

Question 3: What dollar figure indicates the amount that the Diamonds product line is contributing towards covering fixed costs and profit?