39. Sands Corporation operates two stores: J and K. The following information relates to store J:

Sales revenue	$1,300,000
Variable operating expenses	600,000
Fixed expenses:
Traceable to J and controllable by J	275,000
Traceable to J and controllable by others	80,000

J's segment contribution margin is:

A. $345,000.

B. $425,000.

C. $620,000.

D. $700,000.

E. $745,000.

Answer: D

40. Thompson Corporation operates two stores: A and B. The following information relates to store A:

Sales revenue	$900,000
Variable operating expenses	400,000
Fixed expenses:
Traceable to A and controllable by A	275,000
Traceable to A and controllable by others	120,000

A's segment profit margin is:

A. $105,000.

B. $225,000.

C. $380,000.

D. $500,000.

E. $505,000.

Answer: A

41. The following data relate to Department no. 3 of Tsay Corporation:

Segment contribution margin	$540,000
Profit margin controllable by the segment manager	310,000
Segment profit margin	150,000

On the basis of this information, Department no. 3's variable operating expenses are:

A. $80,000.

B. $160,000.

C. $230,000.

D. $390,000.

E. not determinable.

Answer: E

42. The following data relate to Department no. 2 of Young Corporation:

Segment contribution margin	$480,000
Profit margin controllable by the segment manager	230,000
Segment profit margin	110,000

On the basis of this information, fixed costs traceable to Department no. 2 but controllable by others are:

A. $120,000.

B. $140,000.

C. $250,000.

D. $370,000.

E. not determinable.

Answer: A

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