The Following Information Is Available for Half Price Books Inc

question 17

Multiple Choice

The following information is available for Half Price Books Inc.and its two divisions,Books and Periodicals:
$\begin{array}{lll}&\text { Whole } & \text { Books } & \text { Periodicals } \\&\text { Company } & \text { Division } & \text { Division }\\\text { Net Sales }&\$00,000&\$50,000&\$50,000\end{array}$
Fixed Costs Controllable
$\begin{array} { l } \text {By Division Manager }&26,500&22,500&4,000\\\end{array}$

Fixed Costs Not Controlled
$\begin{array} { l } \text {By Division Manager }&18,000&15,000&3,000\\\end{array}$

Variable Costs:
$$\begin{array} { l l l l } \text { Cost of Merchandise Sold } & 24,500 & 17,500 & 7,000 \\\text { Operating Expenses } & 17,400 & 10,000 & 7,400 \\\text { Unallocated Costs } & 4,000 & &\end{array}$$
What is the contribution margin for the Periodicals Division?

• A) $29,600
• B) $32,600
• C) $35,600
• D) $43,000

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