Question

Marigold Corp.reported the following items for 2019: Income tax expense $50000 Contribution margin 120000 Controllable fixed costs 80000 Interest expense 62000 Total operating assets 28000 How much is controllable margin?

Answer 1

Answer:

$40,000

Explanation:

The computation of the controllable margin is shown below:

=  Contribution margin - Controllable fixed costs

= $120,000 - $80,000

= $40,000

If we deduct the controllable fixed costs from the contribution margin then the controllable margin can be computed which shows an accurate amount.

All other information which is given is not relevant. Hence, ignored it