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The following information is available for Pet Store Company and its two divisions, Pet Supplies and Training.Whole Company Pet Supply Dev Trainig Devision
Net sales $170,000 $70,000 $100,000
Fixed costs:
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.
For each of the following items, give an example of a business transaction that has the described effect on the accounting equation:
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Hurd Company acquired a building valued at $160,000 for property tax purposes in exchange for 10,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share.
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