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74.The following selected data relate to the Idaho Division of Far West Enterprises (FWE):Sales revenue$4,580,000Uncontrollable fixed costs traceable to the division1,360,000Allocated corporate overhead590,000Controllable fixed costs
74.The following selected data relate to the Idaho Division of Far West Enterprises (FWE):Sales revenue$4,580,000Uncontrollable fixed costs traceable to the division1,360,000Allocated corporate overhead590,000Controllable fixed costs traceable to the division1,120,000Variable costs40% of revenueRequired: A.Compute the following for the Idaho Division:1.Segment contribution margin.2.Controllable profit margin.3.Segment profit margin.B.Which of the three preceding measures should be used when evaluating the Idaho Division as an investment of FWE's resources? Why?C.Assume that management made the decision to prepare a segmented income statement that reflected Idaho's five operating departments. Would all $1,120,000 of the controllable fixed costs be easily traced to the departments? Briefly explain
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