Problem Set 3 Answer

Problem Set 3 Answer - LIEN BACH Problem Set 3 1. The...

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Problem Set 3 1. The following information is available for Animal Company and its two divisions, Reptiles and Mammals: Company Reptiles Mammal as a whole Division Division Net sales $300,000 $170,000 $130,000 Fixed costs: Controllable by division managers 16,000 10,000 6,000 Controllable by others 8,000 6,000 2,000 Variable costs: Cost of merchandise sold 46,000 28,000 18,000 Operating expenses 14,000 8,000 6,000 Unallocated costs 14,000 Required: a. Compute the contribution margin for the Reptiles Division. Reptiles Division Net Sales 170000 Variable Costs       Cost of merchandise managers 28000       Operating Expenses 8000       Total variable costs 36000 Contribution margin 134000 b. Compute the contribution controllable by the manager of the Mammal Division. Mammal Division Net Sales 130000 Variable Costs       Cost of merchandise managers 18000       Operating Expenses 6000       Total variable costs 24000 Contribution margin
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Problem Set 3 Answer - LIEN BACH Problem Set 3 1. The...

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