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Addax Company has the following information available for the past quarter: Division X Division Y Division Z Sales $500,000 $300,000 $275,000 Variable expenses 25% 28%
Addax Company has the following information available for the past quarter:
Division X | Division Y | Division Z | |
Sales | $500,000 | $300,000 | $275,000 |
Variable expenses | 25% | 28% | 32% |
Fixed expenses controllable by division manager | $100,000 | $50,000 | $40,000 |
Fixed expenses controllable by others | $10,000 | $5,000 | $6,000 |
Unallocated expenses for all three divisions are $15,000. What is the contribution controllable by the division manager in Division X?
A. | $265,000 | |
B. | $375,000 | |
C. | $275,000 | |
D. | $250,000 |
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