87) Define a management control system and identify the issues involved with the design of a successful system.

88) Compare financial and nonfinancial performance, and explain why planning and control systems should consider both.

89) The following information is available for Hupp Corporation and its two divisions, Apple and Orange:

CompanyAppleOrange

as a whole DivisionDivision

Net sales$400,000$100,000$300,000

Fixed costs:

Controllable by

division manager55,00025,00030,000

Controllable by

others30,00010,00020,000

Variable costs:

Cost of

merchandise sold85,00035,00050,000

Operating expenses60,00020,00040,000

Unallocated costs10,000

Required:

a.Compute the contribution margin for the Apple Division.

b.Compute the contribution controllable by the manager of the Orange Division.

c.Compute the contribution by segment for the Apple Division.

d.



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