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%

Ans: a) $80,000

Business

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