Compute the contribution margin for the pet supplies

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Reference no: EM13484746

The following information is available for Pet Store Company and its two divisions, Pet Supplies and Training.

Whole Company Pet Supply Dev Trainig Devision

Net sales $170,000 $70,000 $100,000

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 Pet Supplies Division.

B) Compute the contribution controllable by the manager of the Training Division.

C) Compute the contribution by segment for the Training Division.

D) Compute the income before taxes for the whole company.

Reference no: EM13484746

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