The Following Information Is Available for Bargain Books and Its

question 87

Multiple Choice

The following information is available for Bargain Books and its two divisions,Textbooks and Fiction Books.
$\begin{array}{lll}&\text { Whole } && \text { fiction } & \\&\text { Company } & \text { textbooks } & \text { books }\\\text { Net sales }&\$100,000&\$60,000&\$40,000\end{array}$
Fixed costs controllable by
$\begin{array}{lll}\text { Division Manager }&16,500 & 12,500 & 4,000 \\\text { Fixed costs controlled by others }&8,000 & 5,000 & 3,000\end{array}$
Variable costs:
$$\begin{array} { l l l l } \text { Cost of merchandise sold } & 24,500 & 17,500 & 7,000 \\\text { Operating expenses } & 16,400 & 10,000 & 6,400 \\\text { Unallocated costs } & \text { B,000 } & &\end{array}$$
What is the contribution by segment for the Textbooks Division?

• A) $15,000
• B) $20,000
• C) $32,500
• D) $42,500

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Definitions:

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