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The following information is available for Price Supplies Inc. and its two divisions, Durable Goods and Nondurable Goods. Whole Durable Nondurable Company Goods Goods Net

The following information is available for Price Supplies Inc. and its two divisions, Durable Goods and Nondurable Goods.

Whole Durable Nondurable

Company Goods Goods

Net sales $100,000 $50,000 $50,000

Fixed costs controllable by

Division Manager 16,500 12,500 4,000

Fixed costs not controlled by

Division Manager 8,000 5,000 3,000

Variable costs:

Cost of merchandise sold 24,500 17,500 7,000

Operating expenses 16,400 10,000 6,400

Unallocated costs 1,000

What is the contribution controllable by the manager of the Nondurable Goods Division?

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