Della Brown is the manager of one of the stores in the nationwide EatRite supermarket chain. Dellas store has three departments; she evaluates the managers of each of those three departments using a Department Margin number. The following information has been gathered about the performance of Dellas store in the most recent month.

Contribution-

Operating Departments Revenue Margin Ratio

Groceries $600,000 20%

Fresh produce 200,000 40%

Dry goods 500,000 35%

Fixed costs controllable by:

Manager of grocery department $50,000

Manager of fresh produce department 70,000

Manager of dry goods department 80,000

Store manager 100,000

Corporate headquarters 130,000

Total $430,000

Compute the STORE MARGIN number that can be used to appropriately measure the performance of Della Brown, the store manager, who is evaluated as a manager of a profit center. Remember that Della is the manager of the entire store meaning that she has responsibility for the store itself and for each of the departments in the store.

$175,000

$200,000

$100,000

$375,000

$75,000