Wetzel Company Has the Following Information Available for the Past

question 141

Multiple Choice

Wetzel Company has the following information available for the past quarter:
$\begin{array}{llll}&\text { Division A }&\text { Division B }&\text { Division C }\\\text { Sales } & \$ 250,000 & \$ 400,000 & \$ 350,000 \\\text { Variable expenses } & 52 \% & 30 \% & 40 \% \\\text { Fixed expenses controllable by division manager } & \$ 60,000 & \$ 200,000 & \$ 175,000 \\\text { Fixed expenses controllable by others } & \$ 10,000 & \$ 5,000 & \$ 7,500\end{array}$
Unallocated expenses for all three divisions are $22,000.What is the contribution controllable by the division manager in Division C?

• A) $5,500
• B) $27,500
• C) $35,000
• D) $210,000

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Definitions:

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