(Solved Homework): The energy division of a company produced two products, oil and gas. Information is:…

The energy division of a company produced two products, oil and gas. Information is:
Net sales were $250,000 (oil) and $400,000 (gas)
Oil’s variable costs were $100,000 (product) and $50,000 (selling)
Gas’s variable costs were $300,000 (product) and $4,000 (selling)
Controllable fixed costs were $25,000 (oil) and $30,000 (gas)
Uncontrollable fixed costs were $45,000 (oil) and $50,000 (gas)
Nontraceable costs that are attributable to both oil and gas total $35,000.
Calculate oil’s controllable contribution margin.

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Oil’s controllable contribution margin = Sales ( oil ) – Variable costs ( Oil )

250000 – 100000 – 50000

= $ 100000.

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