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Managers of Cost Centers Are Evaluated According to the Profits

Question 18

True/False

Managers of cost centers are evaluated according to the profits which their departments are able to generate
Falquez Company sells three products: R, S, and T. Data for activity of Falquez Company during July are as follows:  Products  Total RST Sales £800,000£150,000?£200,000 Contribution margin ratio 32%?25%40% Traceable fixed expenses £120,000£25,000£60,000?\begin{array}{lllll}&&&\text { Products }\\&\text { Total } &R &S&T\\\text { Sales } & £ 800,000 & £ 150,000 & ? & £ 200,000 \\\text { Contribution margin ratio } & 32 \% & ? & 25 \% & 40 \% \\\text { Traceable fixed expenses } & £ 120,000 & £ 25,000 & £ 60,000 & ?\end{array}

Common fixed expenses for July amounted to £90,000.

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