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Hilbert company recorded operating data for its shoe division for the year

Accounting Oct 30, 2020

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

sale $1,000,000

contribution margin. 220,000

total direct fixed costs. 120,000

average total operating assets. 400,000

what is the controllable margin for the year (in dollars)?

Expert Solution

Controllable margin= Contribution margin- Controllable fixed cost

= 220000- 120000

= $100000

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