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The following information pertains to the East Division of Saturn Company:
Net sales $21,000
Variable costs:
Cost of merchandise sold 10,300
Operating expenses 3,700
Fixed costs:
Controllable by segment manager 2,400
Controllable by others 1,000
Unallocated costs 600
The contribution margin of the East Division is ________.
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Quiltworks company reported actual sales of $2,000,000, and fixed costs of $450,000. The contribution margin ratio is 30%.
Maria Chevas bought a GIC (guaranteed investment certificate) on June 1 for $3,200. The certificate reached maturity on December 1 (it was a six-month certificate). On December 1, she cashed in the certificate and received her original $3,200 back..
As you discuss the tax-free sale with Emily and Richard, you present several accounting methods for the acquisition-cost basis, equity basis, or consolidated basis. In your presentation, include the following information:
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