Classico's Pizza, a chain of pizza parlors, views each branch location as an investment center. The local branch reported the following results for the current year: Sales ......... Variable expenses Traceable fixed costs. Average total assets of the branch................ = (a) Contribution margin: $ ****** Compute the following measures for this investment center: OC $3,600,000 $2,970,000 $270,000 $1,440,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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7. Responsibility income statement
Classico's Pizza, a chain of pizza parlors, views each branch location as an
investment center. The local branch reported the following results for the
current year:
Sales
Variable expenses
Traceable fixed costs..
Average total assets of the branch
$3,600,000
$2,970,000
$270,000
$1,440,000
Compute the following measures for this investment center:
(a) Contribution margin: $
(b) Contribution margin ratio:
(c) Responsibility margin: $_
(d) Increase in annual responsibility margin that would be expected to result
from a 10% increase in sales volume: $_
_%
Transcribed Image Text:7. Responsibility income statement Classico's Pizza, a chain of pizza parlors, views each branch location as an investment center. The local branch reported the following results for the current year: Sales Variable expenses Traceable fixed costs.. Average total assets of the branch $3,600,000 $2,970,000 $270,000 $1,440,000 Compute the following measures for this investment center: (a) Contribution margin: $ (b) Contribution margin ratio: (c) Responsibility margin: $_ (d) Increase in annual responsibility margin that would be expected to result from a 10% increase in sales volume: $_ _%
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