The following is a summarized income statement of Carr Co.'s profit center No. 43 for March 2014:
Contribution Margin --------------------------------$70,000
Period expenses:
Manager's salary----------$20,000
Facility depreciation--------8,000
Corporation expense allocation 5,000--------33,000
Profit center income ---------------------------------$37,000
Which of the following amounts would MOST likely be subject to the control of the profit center's manager?
a. $70,000
b. $50,000
c. $37,000
d. $33,000
Answer: A
CPA Exam
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