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The following information is available for Hupp Corporation and its two divisions, Apple and Orange: Company Apple Orange as a whole Division Division Net sales
The following information is available for Hupp Corporation and its two divisions, Apple and Orange: Company Apple Orange as a whole Division Division Net sales $400,000 $100,000 $300,000 Fixed costs: Controllable by division manager 55,000 25,000 30,000 Controllable by others 30,000 10,000 20,000 Variable costs: Cost of merchandise sold 85,000 35,000 50,000 Operating expenses 60,000 20,000 40,000 Unallocated costs 10,000 Required: a) Compute the contribution margin for the Apple Division. b) Compute the contribution controllable by the manager of the Orange Division. c) Compute the contribution by segment for the Apple Division. d) Compute the income before income taxes for Hupp Corporation
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