Question: Pippen co. recorded operating data for its shoe division for the year. the company's desired return is 5%. sales $1,000,000rn contribution margin 200,000rn total direct

Pippen co. recorded operating data for its shoe division for the year. the company's desired return is 5%.

sales $1,000,000rn
contribution margin 200,000rn
total direct fixed costs 120,000rn
average total operating assets 400,000rn

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

a). $80,000rn

b). $60,000rn

c). 20%rn

d). 50%

Step by Step Solution

★★★★★

3.50 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Assuming all the fixed costs ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Which one of the following assets should Manuel contribute to his favorite charity and why? a. Stock acquired five years ago at a cost of $13,000. The current fair market value is $10,000. b. Stock...

Which one of the following compounds is most consistent with the infrared spectrum given in Figure 13.31? Explain your reasoning.

Which one of the following is correct? a. Short-run planning includes capital budgeting and operational budgeting. b. Long-run planning includes production and process prioritizing. c. Long-run...

Vulcan Companys contribution format income statement for June is given below: Management is disappointed with the companys performance and is wondering what can be done to improve profits. By...

Coupons.com (COUP) went public in 2014. This exercise asks you to forecast the company's free cash flow and discuss risks the company is facing. You may use and modify if necessary the template below...

Presented below are income statements prepared on an average cost and FIFO basis for Carlton Company, which started operations on January 1, 2009. The company presently uses the average cost method...

During the first month of operations ended July 31, 2016, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Sales...

The Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the company for 2011 and 2012: There was no beginning inventory on January 1, 2011. The...

Gardner Enterprises reported a net loss of $55,000 for the year just ended. Relevant data for the company follow. Required: 1. Using the indirect method, determine the net cash flows provided by...

During the year, Lyle Co. recorded prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. At the end of its annual accounting period, the company...

A glucose solution is administered intravenously into the bloodstream at a constant rate r. As the glucose is added, it is converted into other substances and removed from the bloodstream at a rate...

Suppose that CSP-1 is used for a manufacturing process where it is desired to maintain an AOQL of 1.90%. Specify two CSP-1 plans that would meet this AOQL target.

What is a requirement stated by the Sarbanes - Oxiey Act? Multiple Choice This act limits the types of assets commercial baris can buy. This act requires firms to separate ther consulting anc aditing...

Plastic Co Pte Ltd (Plastico) is a Fiji company. The company has issued and paid up capital of $250,000 held in equal parts by two brothers. The companys business involves making plastic products for...

A quality control study was undertaken by the supervisor of a group of computer programmers. For each of the last 20 days, 25 program modules were randomly selected and inspected for coding errors....

Here is a press release from the American company known as Zeroz Corp. Zeroz Corp has recently completed a private placement of $200 million of common stock, $300 million of convertible securities,...

Find the audited financial statements of a major U.S. corporation. a. Summarize its most important financial accounting policies. b. Describe two elements of the Federal income tax law that...

What are the reasons why, even if it is in the best interests of every other country to limit prescription drug prices, it might not be in the best interests of the United States to limit those...

1. You are interested to see if there is a relationship between days reported going to the gym per week and the number of hours worked in a week a person reports. You think that those who work less...

Question 15 The following data are available for Wheels 'N Spokes Repair Shop for 2020: $188000 Repair technician's wages Fringe benefits Overhead 70000 86000 Total $344000 The desired profit margin...

If a company plans to sell 65,000 units of product but sells 80,000, the most appropriate comparison of the cost data associated with the sales will be by a budget based on 15,000 units of activity....

The Baily Division recorded operating data as follows for the past two years: Year 1 Year $1,200,000 $720,000 sales Shareholders' Equity Average Operating Assets Margin Return on Investment $540,000...

PLEASE ANSWER ALL, I REALLY NEED YOUR HELP! THANK YOUUU! Wildhorse, Inc. is considering purchasing equipment costing $60000 with a 6-year useful life. The equipment will provide annual cost savings...

Question 10 Marigold Corp. recorded operating data for its auto accessories division for the year. Sales $840000 Contribution margin 200000 Total direct fixed costs 90000 Average total operating...

Oriole Corporation recorded operating data for its Waterhole division for the year. Oriole requires its return to be 8.7%. Sales $498000 Controllable margin 94000 Total average assets 376000 Fixed...