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Flex, Inc, Which Is Headquartered in Hoboken, New Jersey, Operates a a Chain

Question 44

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Flex, Inc., which is headquartered in Hoboken, New Jersey, operates a chain of 125 shoe stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Pottersville, New Jersey:
Flex, Inc., which is headquartered in Hoboken, New Jersey, operates a chain of 125 shoe stores throughout the United States. Consider the costs that appear in the following table, many of which pertain to the company's sole operation in Pottersville, New Jersey:     Specify store maintenance as a fixed costs. Adopt the following language.  Pottersville store maintenance costs as agreed upon in yearly maintenance contract negotiated by Pottersville manager.  Required:   Analyze each of the costs and determine whether the cost affects Pottersville segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Flex, Inc. Place an  X  in the appropriate cell(s).
Specify store maintenance as a fixed costs. Adopt the following language. "Pottersville store maintenance costs as agreed upon in yearly maintenance contract negotiated by Pottersville manager."
Required:

Analyze each of the costs and determine whether the cost affects Pottersville segment contribution margin, controllable profit margin, and segment profit margin, and/or the net income of Flex, Inc. Place an "X" in the appropriate cell(s).

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