Perot Manufacturing reported the following items for 2020: $\begin{array} { l l }
\text { Income tax expense } & \$ 40,000 \
\text { Contributian margin } & 125,000 \
\text { Contrallable fixed costs } & 30,000 \
\text { Interest expense } & 10,000 \
\text { Total operating assets } & 475,000
\end{array}$ How much is controllable margin?
A)$125,000
B)$95,000
C)$85,000
D)$45,000

Question

Perot Manufacturing reported the following items for 2020: $\begin{array} { l l } 
\text { Income tax expense } & \$ 40,000 \
\text { Contributian margin } & 125,000 \
\text { Contrallable fixed costs } & 30,000 \
\text { Interest expense } & 10,000 \
\text { Total operating assets } & 475,000
\end{array}$ How much is controllable margin?
A)$125,000
B)$95,000
C)$85,000
D)$45,000

Quizplus · Accepted Answer

Controllable margin is calculated as Sales - Variable expenses - Controllable fixed expenses. From the given information, controllable margin can be calculated as $400,000 - $230,000 - $75,000 = $95,000. Therefore, option B is the correct answer.

Perot Manufacturing Reported the Following Items for 2020 How Much Is Controllable Margin? A)$125,000 B)$95,000 C)$85,000 D)$45,000

Perot Manufacturing Reported the Following Items for 2020 How Much Is Controllable Margin?
A)$125,000
B)$95,000
C)$85,000
D)$45,000