Pippen CoRecorded Operating Data for Its Shoe Division for the Year

question 142

Multiple Choice

Pippen Co.recorded operating data for its shoe division for the year.The company's desired return is 5%. $\begin{array}{lr}\text { Sales } & \$ 1,000,000 \\\text { Contribution margin } & 200,000 \\\text { Total direct fixed costs } & 120,000 \\\text { Average total operating assets } & 400,000\end{array}$ Which one of the following reflects the controllable margin for the year?

• A)20%
• B)50%
• C)$60,000
• D)$80,000