The following information pertains to the Northwest Territory of Jordan, Inc.:

-The contribution controllable by segment manager is
A) $270,000.
B) $150,000.
C) $100,000.
D) $ 70,000.

Question

The following information pertains to the Northwest Territory of Jordan, Inc.:
 
-The contribution controllable by segment manager is
A) $270,000. 
B) $150,000. 
C) $100,000. 
D) $ 70,000.

Quizplus · Accepted Answer

The contribution controllable by segment manager is calculated as follows:
Total contribution - (common fixed expenses + traceable fixed expenses)
= $1,200,000 - ($350,000 + $700,000)
= $150,000
Therefore, the contribution controllable by segment manager is $150,000. Option B is the correct answer.

The Following Information Pertains to the Northwest Territory of Jordan