Grown Industries reported the following items for 2016: $\begin{array}{lr}
\text { Income tax expense } & \$ 60,000 \
\text { Contribution margin } & 200,000 \
\text { Controllable fixed costs } & 80,000 \
\text { Interest expense } & 40,000 \
\text { Total operating assets } & 650,000
\end{array}$ How much is controllable margin?
A)$200,000
B)$120,000
C)$60,000
D)$20,000

Question

Quizplus · Accepted Answer

Controllable margin is calculated as Contribution Margin minus Controllable Fixed Costs. Thus, $200,000 - $80,000 = $120,000.

Grown Industries Reported the Following Items for 2016 How Much Is Controllable Margin? A)$200,000 B)$120,000 C)$60,000 D)$20,000

Grown Industries Reported the Following Items for 2016 How Much Is Controllable Margin?
A)$200,000
B)$120,000
C)$60,000
D)$20,000