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Peppers Automotive produces auto parts for various automotive retailers. Peppers is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,540,000, variable costs are $552,000, and fixed costs are $634,000. Of the fixed costs, controllable fixed costs are $136,000 and noncontrollable fixed costs are $498,000.

What are the controllable margin and total contribution by profit center (CPC), respectively?

multiple choice

• Controllable margin: $852,000; CPC: $490,000

• Controllable margin: $988,000; CPC: $354,000

• Controllable margin: $988,000; CPC: $136,000

• Controllable margin: $852,000; CPC: $354,000