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QUESTION 16 The following information is available for Delta Company Division A Division B Division C Company $950,000 $550,000 $600,000 $2,100,000 $535,000 $380,000 $480,000 $1,395,000
QUESTION 16 The following information is available for Delta Company Division A Division B Division C Company $950,000 $550,000 $600,000 $2,100,000 $535,000 $380,000 $480,000 $1,395,000 Sales COGS Traceable fixed costs - controllable Traceable fixed costs - uncontrollable Common fixed costs $150,000 $75,000 $80,000 -$305,000 $100,000 $90,000 $50,000 -$240,000 -$50,000 (when referring to values, use only whole Dollars and insert"," where applicable such as 150,000) a) How much is the contribution margin of Division A? $ b) How much is the responsibility margin of Division B? $ c) How much is the performance margin of Division C? $ d) If Division C were eliminated, the company's net profit will (increase, decrease) by $ e) If Division A were eliminated, the company's net profit will (increase, decrease) by $ f) If Delta considered an advertising campaign that would boost the sale of any of the Divisions by $50,000 (you do not need to consider the costs of the advertising campaign), to which division should the advertising be devoted to maximize Delta's net profit? Division (A, B, C)
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