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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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