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Q1) Safety Seats Co. recorded operating data for its shoe division for year. Company's desired ROI is 5%.

Sales

$500,000

Variable costs

400,000

Contribution margin

100,000

Total direct fixed costs

60,000

Average total operating assets

200,000

Which one of the given reflects controllable margin for year?

i) $40,000

ii) $140,000

iii) $400,000

iv) 30%

v) 50%

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