Pippen Co. recorded operating data for its shoe division for the year. The company's desired return is 5%.
Sales $1,000,000
Contribution margin 200,000
Total direct fixed costs 120,000
Average total operating assets 400,000
Which one of the following reflects the controllable margin for the year?
a) $80,000
b) $60,000
c) 20%
d) 50%
a) $80,000
Business
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A) Matheson's current liabilities are low. B) Matheson has a large amount of cash on hand. C) Matheson's current receivables are high. D) Matheson's current assets are low. E) Matheson's owners' equity is high.
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Indicate whether this statement is true or false.
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