The following data relate to Department no. 2 of Eva Corporation: $$\begin{array} { l r }
\text { Segment contribution margin } & \$ 540,000 \
\text { Profit margin controllable by the segment manager } & 320,000 \
\text { Segment profit margin } & 60,000
\end{array}$$ On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:
A) $160,000.
B) $220,000.
C) $260,000.
D) $480,000.
E) not determinable.

Question

The following data relate to Department no. 2 of Eva Corporation: $$\begin{array} { l r } 
\text { Segment contribution margin } & \$ 540,000 \
\text { Profit margin controllable by the segment manager } & 320,000 \
\text { Segment profit margin } & 60,000
\end{array}$$ On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:
A) $160,000.
B) $220,000.
C) $260,000.
D) $480,000.
E) not determinable.

Quizplus · Accepted Answer

The Answer of The following data relate to Department no. 2 of Eva Corporation: $$\begin{array} { l r } 
\text { Segment contribution margin } & \$ 540,000 \
\text { Profit margin controllable by the segment manager } & 320,000 \
\text { Segment profit margin } & 60,000
\end{array}$$ On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:
A) $160,000.
B) $220,000.
C) $260,000.
D) $480,000.
E) not determinable.

The Following Data Relate to Department No On the Basis of This Information, Fixed Costs Traceable to Corporation