For the year ending December 31, 2020, Corum Industries accumulates the following data for the Plastics Division
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For the year ending December 31, 2020, Corum Industries accumulates the following data for the Plastics Division which it operates as an investment center: contribution margin—€700,000 budget, €710,000 actual; controllable fixed costs—€300,000 budget, €302,000 actual. Average operating assets for the year were €2,000,000. Prepare a responsibility report for the Plastics Division beginning with contribution margin.
Contribution MarginContribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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