Calabria Healthcare supplies prescription drugs to pharmacies. As the management accountant,you are required to analyze the financial statements for this quarter. You already have analyzedthe company’s two divisions, Name Brand and Generic, and your supervisor wants an analysis ofthe comparable profitability of the SBUs. The contribution margins are $500,000 and $200,000,respectively; the controllable fixed costs are $200,000 and $50,000; and the noncontrollable fixedcosts are $50,000 and $100,000. Assume there are no nontraceable fixed costs.What are the total contributions by profit center (CPC) for the Name Brand and Genericdivisions, respectively?a. Name Brand: $300,000; Generic: $150,000b. Name Brand: $250,000; Generic: $50,000c. Name Brand: $200,000; Generic: $50,000d. Name Brand: $500,000; Generic: 200,000
Calabria Healthcare supplies prescription drugs to pharmacies. As the
you are required to analyze the financial statements for this quarter. You already have analyzed
the company’s two divisions, Name Brand and Generic, and your supervisor wants an analysis of
the comparable profitability of the SBUs. The contribution margins are $500,000 and $200,000,
respectively; the controllable fixed costs are $200,000 and $50,000; and the noncontrollable fixed
costs are $50,000 and $100,000. Assume there are no nontraceable fixed costs.
What are the total contributions by profit center (CPC) for the Name Brand and Generic
divisions, respectively?
a. Name Brand: $300,000; Generic: $150,000
b. Name Brand: $250,000; Generic: $50,000
c. Name Brand: $200,000; Generic: $50,000
d. Name Brand: $500,000; Generic: 200,000
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