Grown Industries Reported the Following Items for 2016 How Much Is Controllable Margin?
A) $200000
B) $120000
C)

question 202

Multiple Choice

Grown Industries reported the following items for 2016: $$\begin{array} { l r } \text { Income tax expense } & \$ 60,000 \\\text { Contribution margin } & 200,000 \\\text { Controllable fixed costs } & 80,000 \\\text { Interest expense } & 40,000 \\\text { Total operating assets } & 650,000\end{array}$$ How much is controllable margin?

• A) $200000
• B) $120000
• C) $60000
• D) $20000

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Definitions:

365-Day Year

A method of interest calculation that uses a full calendar year to determine the amount due.

Loan Period

The duration of time from the initiation to the full repayment of a loan.

Exact Simple Interest

A method of calculating interest that uses a base of 365 days per year, ensuring accuracy based on actual calendar days.

365-Day Year

A 365-day year is a calendar method used in finance that assumes all years have 365 days for the calculation of interest rates.