The Following Information Is Available for Pet Store Company and Its

question 5

Essay

The following information is available for Pet Store Company and its two divisions,Pet Supplies and Training.
$\begin{array}{lll}&\text { Whole } & \text { Pet Supplies } & \text { Training } \\&\text { Company } & \text { Division } & \text { Division }\\\text { Net sales }&\$170,000&\$70,000&\$100,000\end{array}$
Fixed costs:
$\begin{array}{lll}\text { Controllable by division managers }&16,000 & 10,000 & 6,000 \\\text { Controllable by others }&8,000 & 6,000 & 2,000\end{array}$
Variable costs:
$\begin{array}{llll}\text { Cost of merchandise sold } & 46,000 & 28,000 & 18,000 \\\text { Operating expenses } & 14,000 & 8,000 & 6,000 \\\text { Unallocated costs } & 14,000 &\end{array}$
Required:
A) Compute the contribution margin for the Pet Supplies Division.
B) Compute the contribution controllable by the manager of the Training Division.
C) Compute the contribution by segment for the Training Division.
D) Compute the income before taxes for the whole company.

• A) Compute the contribution margin for the Pet Supplies Division.
• B) Compute the contribution controllable by the manager of the Training Division.
• C) Compute the contribution by segment for the Training Division.
• D) Compute the income before taxes for the whole company.

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