The Following Information Is Available for Beast Company and Its

question 114

Essay

The following information is available for Beast Company and its two divisions, Reptiles and Mammals: $\begin{array}{l}&\text { Company as a } & \text { Reptiles } & \text { Mammal } \\&\text { whole } & \text { Division } & \text { Division }\\\text { Net sales }&\$300,000&\$170,000&\$130,000\\\text { Fixed costs: }\\\text { Controllable by }\\\text { division managers } & 16,000 & 10,000 & 6,000 \\\text { Controllable by others } & 8,000 & 6,000 & 2,000\text { Variable costs: }\\\text { Cost of } & & & \\\text { merch andise sold } & 46,000 & 28,000 & 18,000 \\\text { Operating expenses } & 14,000 & 8,000 & 6,000 \\\text { Unalloc ated costs } & 4,000 & &\end{array}$ Required:
a. Compute the contribution margin for the Reptiles Division.
b. Compute the contribution controllable by the manager of the Mammal Division.
c. Compute the contribution by segment for the Mammal Division.
d. Compute the income before income taxes for the Beast Company.

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Definitions:

Acetylcholine Antagonist

A type of drug that blocks the action of acetylcholine at its receptor sites in the nervous system, affecting various bodily functions.

Curare

Curare is a poison used primarily in South America, derived from plant extracts, and known for its muscle-paralyzing effects, historically employed on arrows or blow darts for hunting.

Sensitization

Learned behavior in which the response to a stimulus strengthens with repeated presentations.

Drug Use

The act of consuming substances for medical or recreational purposes, which can impact health and behavior.