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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 8,000 5,000 3,000 Division Manager Variable costs: Cost of merchandise sold Operating expenses Unallocated costs 24,500 16,400 1,000 17,500 10,000 8,000 6,400 What is the contribution by segment for the Expensive Goods Division? What is the contribution by segment for the Expensive Goods Division? A) $36,600 B) $28,600 C) $29,600 D) $32,600
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