How do you compute Responsibility margin for this problem: The downtown branch o
ID: 2481917 • Letter: H
Question
How do you compute Responsibility margin for this problem:
The downtown branch of Emily’s Bakery is organized as an investment center. The following information is available for the current year.
Sales $448,000
Variable expenses.................................................................................................................... $217,000
Traceable fixed costs............................................................................................................. $230,000
Average total assets invested in this segment....................................................... $168,000
Explanation / Answer
Responsibiltiy margin = sales -Variable expenses -Traceable fixed cost
= 448,000 - 217,000 - 230,000
= $ 1000
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