The Following Information Is Available for Paperback Inc Unallocated Costs 7,000 _____ Is the Contribution Margin for the Divisions

question 47

Multiple Choice

The following information is available for Paperback Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \\&\text { as a whole } & \text { Division } & \text { Division }\\\hline\text { Net sales } & \$ 100,000 & \$ 60,000 & \$ 40,000\\\text { Fixed costs: }\\\text { Controllable by }\\\text { division manager } & 16,500 & 12,500 & 4,000 \\\text { Controllable by others } & 8,000 & 5,000 & 3,000 \\\text { Variable costs: } & & & \\\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \\\text { Operating expenses } & 16,400 & 10,000 & 6,400\\\text { Unallocated costs }&1,000\end{array}$ Unallocated costs 7,000 _____ is the contribution margin for the Books Division.

• A)$32,500
• B)$42,500
• C)$20,000
• D)$15,000

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Definitions:

Celtic Band

A group of musicians specializing in music derived from the Celtic regions of Ireland, Scotland, and other areas, often featuring traditional instruments.

Buddhist Meditation

A form of mental training and discipline in the Buddhist tradition aimed at enhancing mindfulness, concentration, and insight into the nature of existence.

Material Culture

The physical objects, resources, and spaces that people use to define their culture, including homes, artwork, tools, and religious artifacts.

Manufactured

Produced or made from raw materials through the use of industrial processes.