Q1) Safety Seats Co. recorded operating data for its shoe division for year. Company's desired ROI is 5%.
|
Sales
|
$500,000
|
|
Variable costs
|
400,000
|
|
Contribution margin
|
100,000
|
|
Total direct fixed costs
|
60,000
|
|
Average total operating assets
|
200,000
|
Which one of the given reflects controllable margin for year?
i) $40,000
ii) $140,000
iii) $400,000
iv) 30%
v) 50%