EKPN Company recorded the following operating data: $$\begin{array} { l l }
\text { Sales } & \$ 1,250,000 \
\text { Contribution margin } & 485,000 \
\text { Total direct fixed costs } & 400,300 \
\text { Total operating assets Jan. 1, 2020 } & 750,000 \
\text { Total operating assets Dec. 31, 2020 } & 790,000 \
\text { EKPN Compary's desired return } & 12 \%
\end{array}$$ What is EKPN Company's controllable margin?
A)$849,700
B)$765,000
C)$410,000
D)$84,700

Question

EKPN Company recorded the following operating data: $$\begin{array} { l l } 
\text { Sales } & \$ 1,250,000 \
\text { Contribution margin } & 485,000 \
\text { Total direct fixed costs } & 400,300 \
\text { Total operating assets Jan. 1, 2020 } & 750,000 \
\text { Total operating assets Dec. 31, 2020 } & 790,000 \
\text { EKPN Compary's desired return } & 12 \%
\end{array}$$ What is EKPN Company's controllable margin?
A)$849,700
B)$765,000
C)$410,000
D)$84,700

Quizplus · Accepted Answer

Controllable margin is calculated as Contribution Margin - Direct Fixed Costs. From the data provided, Contribution Margin is $485,000 and Total Direct Fixed Costs are $400,300. Therefore, Controllable Margin = $485,000 - $400,300 = $84,700.

EKPN Company Recorded the Following Operating Data What Is EKPN Company's Controllable Margin? A)$849,700 B)$765,000 C)$410,000 D)$84,700

EKPN Company Recorded the Following Operating Data What Is EKPN Company's Controllable Margin?
A)$849,700
B)$765,000
C)$410,000
D)$84,700