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Sir john mofat can u please help me wd des question?
Division A reported sales of $100000 n contribution of $160000, fixed cost are $80000
of whoch 20% r controllable by profit manager?wat is de profit controllable by divion mngr fr recnt period?
The question as you have typed it is impossible – the contribution can not be more than the sales!!!!
Assuming that you have put the ‘,’ in the right place and that therefore it is 20% of the fixed costs that are controllable, then the controllable profit is the contribution less 16,000 (20% of 80000)
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