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The following information is available for Discounted Supplies Inc. and its two divisions, Cheap Goods and Expensive Goods. Whole Company Net sales $100,000 Fixed costs
The following information is available for Discounted Supplies Inc. and its two divisions, Cheap Goods and Expensive Goods. Whole Company Net sales $100,000 Fixed costs controllable by Cheap Goods $50,000 Expensive Goods $50,000 12,500 4,000 Division Manager 16,500 Fixed costs not controlled by Division Manager 8,000 5,000 3,000 Variable costs: 24,500 17,500 8,000 Cost of merchandise sold Operating expenses Unallocated costs 10,000 6,400 16,400 1,000 What is the contribution by segment for the Expensive Goods Division? A) $29,600 B) $32.600
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