The Following Information Is Available for Hardbound Inc Unallocated Costs 4,000 _____ Is the Contribution Margin for the Divisions

question 95

Multiple Choice

The following information is available for Hardbound Inc.and its two divisions, Books and Periodicals: $\begin{array}{cccc}&\text { Company } & \text { Books } & \text { Periodicals } \\&\text { as a whole } & \text { Division } & \text { Division }\\\hline\text { Net sales } & \$ 100,000 & \$ 50,000 & \$ 50,000\\\text { Fixed costs: }\\\text { Controllable by }\\\text { division manager } & 26,500 & 22,500 & 4,000 \\\text { Controllable by others } & 18,000 & 15,000 & 3,000 \\\text { Variable costs: } & & & \\\text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \\\text { Operating expenses } & 16,400 & 10,000 & 6,400\end{array}$ Unallocated costs 4,000 _____ is the contribution margin for the Periodicals Division.

• A)$29,600
• B)$36,600
• C)$43,000
• D)$32,600

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Definitions:

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