The division of a multinational corporation shows sales of ($2.1) million, variable cost of sales of ($1.3)

Question:

The division of a multinational corporation shows sales of $$2.1$ million, variable cost of sales of $$1.3$ million, and divisional overheads of $$600,000—60%$ of which is deemed controllable by the division and the other 40% is a head office allocation. The profit on which the divisional manager should be evaluated is

a. $800,000

b. $440,000

c. $360,000

d. $200,000

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