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Lorenz Co. recorded operating data for its shoe division for the year. The company's desired return is 5%.
Sales P2,000,000
Contribution margin ratio 40%
Total direct fixed costs - controllable 130,000
Total direct fixed costs - uncontrollable 60,000
Total Indirect fixes costs 19,000
Average total operating assets 400,000
Problem 1: How much is the net operating profit of the segment?
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