The Following Information Is Available for Ohlson Consulting Company and Its

question 71

Essay

The following information is available for Ohlson Consulting Company and its two offices:
$\begin{array}{ll}&\text { Greenfield } & \text { Greendale } \\&\text { Office } & \text { Office }\\\text { Net sales }&\$100,000&\$200,000\end{array}$
Fixed costs:
$\begin{array} { l } \text { Controllable by division manager}&78,000&48,000 \\ \text { Controllable by others}&4,000&8,000 \\\end{array}$

Variable costs:
$\begin{array} { l } \text {Cost of merchandise sold }&30,000&120,000 \\ \text { Operating expenses}&15,000&60,000 \\\end{array}$

Unallocated costs were $152,000.
Required:
A) Compute the contribution margin for the Greenfield office.
B) Compute the contribution (or loss) controllable by the manager of the Greendale Office.
C) Compute the contribution (or loss) by segment for the Greenfield office.
D) Compute the income (or loss) before taxes for the company as a whole.

• A) Compute the contribution margin for the Greenfield office.
• B) Compute the contribution (or loss) controllable by the manager of the Greendale Office.
• C) Compute the contribution (or loss) by segment for the Greenfield office.
• D) Compute the income (or loss) before taxes for the company as a whole.

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Definitions:

Financial Performance Measures

Metrics used to assess a company's financial health, including profitability, liquidity, and solvency ratios.

Non-Financial Performance Indicators

Metrics used to assess the performance of a business not directly related to financial figures, such as customer satisfaction and employee turnover rates.

Quality Measure

A standard or metric used to assess the degree of excellence of a product, service, or process.

Machine Downtime

The period during which a machine is not operational or productive, often due to maintenance, repairs, or technical failures.