[eoinconnolly1]

Passed. This was third attempt, I’m so glad.
52% on my third attempt, so don’t give up!!

Thank you so much Open Tuition.

[eoinconnolly1]

Yep, this is what I thought it was something like that alright.
Thanks mrjonbain.

[eoinconnolly1]

Thanks Kim, you saved me a lot of time.

[eoinconnolly1]

Your explanation is very clear, thank you. But this question from the examiners report has thrown me off a little:

Comments about Section A
The following questions are taken from Section A of the exam.
Example 1
Division A reported sales of $400,000 and a contribution of $160,000 for the most recent period.
Fixed costs for the period were $80,000, of which 20% were controllable by the division’s manager.
What is the amount of profit which is controllable by the division’s manager for the most
recent period?
Controllable profit is calculated by deducting controllable expenses from controllable revenues.
Revenues and variable costs are usually controllable by the divisional manager. The controllability
of fixed costs depends upon the responsibilities given to the divisional manager. In this case we
are told that only 20% of the fixed costs (20% x $80,000 = $16,000) are controllable by the
divisional manager.
Controllable profit is therefore $160,000 – $16,000 = $144,000

To me, controllable contribution is $144,000.

What am I missing?

[Author]

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