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Question 8 (4 points) Z Company has the following information for the most recen

ID: 2438064 • Letter: Q

Question

Question 8 (4 points) Z Company has the following information for the most recent month. Total Store P Store Q $600,000 $200,000 $400,000 Variable Expenses 344,000 144,000 200,000 Sales Fixed Expenses: Controllable by Store P manager Controllable by Store Q manager Traceable to Store P but not controllable by Store P manager Traceable to Store Q but not controllable by Store Q manager Common fixed expenses Total Fixed Expenses What is Store Q's Contribution Margin? $20,000 32,000 45,000 55,000 34,000 $186,000 a) $200,000 b) $77,000 c) $168,000 d) $113,000

Explanation / Answer

a) $200,000

Store Q's Contribution Margin = Sales - Variable Expenses

Store Q's Contribution Margin = $400,000 - $200,000

Store Q's Contribution Margin = $200,000

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