Safety Seats Co. recorded operating data for its shoe division for the year. The company's desired ROI is 5%.
|
Sales
|
$500,000
|
|
Variable costs
|
400,000
|
|
Contribution margin
|
100,000
|
|
Total direct fixed costs
|
60,000
|
|
Average total operating assets
|
200,000
|
Which one of the following reflects the controllable margin for the year?
1. $40,000
2. $140,000
3. $400,000
4. 30%
5. 50%