Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 17

Pepper’s Automotive produces auto parts for various automotive retailers. Peppers is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,000,000, variable costs are $300,000, and fixed costs are $400,000. Of the fixed costs, controllable fixed costs are $100,000 and noncontrollable fixed costs are $300,000. What is the controllable margin and total contribution by profit center (CPC)?

Step 1 of 6

Controllable margin: