The following information is available for Ohlson Consulting Company and its two offices:

Greenfield Greendale

Office Office

Net sales ....................................................... $100,000               $200,000

Fixed costs:

Controllable by division manager ............... 78,000                   48,000

Controllable by others.................................... 4,000                     8,000

Variable costs:

Cost of merchandise sold.............................. 30,000                  120,000

Operating expenses....................................... 15,000                     60,000

Unallocated costs were $152,000.

Required:

A) Compute the contribution margin for the Greenfield office.

B) Compute the contribution (or loss) controllable by the manager of the Greendale Office.

C) Compute the contribution (or loss) by segment for the Greenfield office.

D) Compute the income (or loss) before taxes for the company as a whole.

Answer rating: 100% (QA)

A Computation of contribution margin for the Greenfield office Sales 100000 ... View the full answer