Pippen Co Recorded Operating Data for Its Shoe Division for the the Year

question 1

Multiple Choice

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

• A) 20%
• B) 50%
• C) $60000
• D) $80000

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