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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 $1,450,000, variable costs are $510,000, and fixed costs are $595,000. Of the fixed costs, controllable fixed costs are $130,000 and noncontrollable fixed costs are $465,000.

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

multiple choice

• Controllable margin: $810,000; CPC: $475,000

• Controllable margin: $940,000; CPC: $345,000

• Controllable margin: $940,000; CPC: $130,000

• Controllable margin: $810,000; CPC: $345,000