Pippen co. recorded operating data for its shoe division for the year. the company's desired return is 5%.

sales $1,000,000
contribution margin 200,000
total direct fixed costs 120,000
average total operating assets 400,000

which one of the following reflects the controllable margin for the year?

a)$80,000

b)$60,000

c)20%

d)50%

Option (a) is correct.

Explanation:

Given that,

Sales = $1,000,000

Contribution margin = 200,000

Total direct fixed costs = 120,000

Average total operating assets = 400,000

Controllable margin for the year:

= Contribution margin - Controllable fixed cost

= $200,000  - $120,000

= $80,000

Therefore, the controllable margin for the year is $80,000.

answer; is the sum of all individual demands curves;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.