Flex, Inc, Which Is Headquartered in Hoboken, New Jersey, Operates a a Chain

question 44

Essay

Flex, Inc., which is headquartered in Hoboken, New Jersey, operates a chain of 125 shoe stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Pottersville, New Jersey:

Specify store maintenance as a fixed costs. Adopt the following language. "Pottersville store maintenance costs as agreed upon in yearly maintenance contract negotiated by Pottersville manager."
Required:

Analyze each of the costs and determine whether the cost affects Pottersville segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Flex, Inc. Place an "X" in the appropriate cell(s).

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Definitions:

Natural Tendency

An inclination or predisposition towards a particular behavior or action that is innate or instinctual.

Role Ambiguity

The uncertainty and lack of clarity about expectations, responsibilities, and the scope of one's job.

Uncertainty

The state of being uncertain or not being sure about the future or about what is the right thing to do.

Family-Run Businesses

Enterprises that are owned, managed, and operated by multiple members of the same family.