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Question 9 (4 points) X Company has the following information for the most recen

ID: 2438066 • Letter: Q

Question

Question 9 (4 points) X Company has the following information for the most recent month. Total Store P Store Q Sales Variable Expenses 320,000 120,000 200,000 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 $600,000$200,000 $400,000 $20,000 32,000 45,000 55,000 34,000 $186,000 What is the profit margin controllable by the manager of Store P? a) $60,000 b) ($19,000) c) $80,000 d) $15,000

Explanation / Answer

Store P Sales 200000 Less: Variable expenses 120000 Contribution margion 80000 Less: Controllable fixed expenses 20000 Profit margin controllable 60000 Option A is correct

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