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5. Wingate Company has the following information available for three divisions of the company:
Division A Division B Division C Sales $250,000 $400,000 $350,000 Variable expenses 52% 30% 40% Fixed expenses controllable by division manager $60,000 $200,000 $175,000 Fixed expenses controllable by others $10,000 $5,000 $7,500
Unallocated expenses for all three divisions are $22,000. What is the contribution by Division A? A) $28,000 B) $60,000 C) $50,000 D) $120,000
6. The following information pertains to the East Division of Saturn Company:
Net sales $21,000 Variable costs: Cost of merchandise sold 10,300 Operating expenses 3,700 Fixed costs: Controllable by segment manager 2,400 Controllable by others 1,000 Unallocated costs 600
The contribution margin of the East Division is ________. A) $7,000 B) $7,700 C) $8,000 D) $10,700
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