The Following Information Is Available for Learning R' Us and Its

question 148

Multiple Choice

The following information is available for Learning R' Us and its two divisions-Books and Periodicals: $\begin{array}{llll}&\text { Company as } & \text { Books } & \text { Periodicals } \\&\text { a whole } & \text { Division } & \text { Division }\\\hline\text { Net sales }&\$100,000&\$60,000&\$40,000\\\text { Fixed costs: }\\\text { Controllable by }\\\text { division man ager } & 16,500 & 12,500 & 4,000 \\\text { Controllable by others } & 8,000 & 5,000 & 3,000 \\\text { Variable costs: } & & &\\\text { Cost of merch andise sold } & 24,500 & 17,500 & 7,000 \\\text { Operating expenses } & 16,400 & 10,000 & 6,400 \\\text { Unalloc ated costs } & 1,000 & &\end{array}$ is the contribution margin for the Periodicals Division.

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

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Definitions:

Membership and Seniority-based Pay

A compensation strategy where an employee's earnings are determined by their length of service and membership in an organization, rather than performance or skills.

Skill-based Pay Plans

Compensation strategies that reward employees based on the range, depth, or level of skills and competencies they demonstrate, rather than their job title or position.

Psychological Distance

The perception of an object, idea, or situation as being removed from the immediate sensory experience, affecting cognition and decision-making.

Employability

The set of skills, knowledge, understanding, and personal attributes that make an individual more likely to choose and secure occupations in which they can be satisfied and successful.