Question

Bonita Company had the following operating data for the year for its computer division: sales, $657000; contribution margin, $136000; total fixed costs (controllable), $94000; and average total operating assets, $284000. What is the controllable margin for the year?

Answer 1

Answer:

$42,000

Explanation

Simply put, Controllable margin is known as the excess of contribution margin over controllable fixed costs.

The formula for Controllable margin is: Controllable Margin = Contribution margin - Controllable fixed expenses

CM= $136,000 - $94,000

CM= $42,000

The controllable margin for the year is $42,000.