Reference no: EM132529529
The Desks R' Us Company has provided the following information for August 2019:
Company as a whole Office Division Home Division
Net Sales $100,000 $66,000 $34,000
Fixed Costs
Controllable by division managers 16,000 10,000 6,000
Controllable by Others 10,000 5,000 5,000
Variable Costs
Cost of Merchandise Sold 38,000 22,000 16,000
Operating Expenses 8,000 5,000 3,000
Unallocated Costs 6,000
Question 1: The profit margin controllable by the Office and Home Divisional managers, respectively, is
Option 1: $51,000 and $23,000
Option 2: $29,000 and $9,000
Option 3: $39,000 and $15,000
Option 4: $56,000 and $28,000
Option 5: $26,000 and $6,000
Option 6: $24,000 and $4,000
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