Pippen CoRecorded Operating Data for Its Shoe Division for the Year

question 54

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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Definitions:

NLRB

The National Labor Relations Board, an independent federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Strikes

Work stoppages initiated by employees as a protest against their employer, often to demand better pay, benefits, or working conditions.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period, typically seen in periods of expansion and contraction.

Strike Activity

Actions taken by workers, typically union members, where they refuse to work in order to protest against their employer's labor practices or to push for better conditions or pay.