Which one of the following reflects the controllable margin

Reference no: EM139794

Safety Seats Co. recorded operating data for its shoe division for the year. The company's desired ROI is 5%.

Sales	$500,000
Variable costs	400,000
Contribution margin	100,000
Total direct fixed costs	60,000
Average total operating assets	200,000

Which one of the following reflects the controllable margin for the year?

1. $40,000

2. $140,000

3. $400,000

4. 30%

5. 50%

Reference no: EM139794

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