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0 0 0 0 40 25 35 100 60000 0 0 0 60000 60000 0 0 0 60000 60000 0 0 0 60000 BRIEF Problem 18-22 QUESTION: SOLUTION: Net Revenue Variable Costs Controllable Fixed Costs Noncontrollable Fixed Cost Untraceable Costs 18-22 Phelps Glass Inc. has reported the following financial data: net revenues of $1 0 million, variable costs of $5 million, controllable fixed costs of $2 million, noncontrollable fixed costs of $1 million, and untraceable costs of $500,000. The accounting manager has supplied you with this data and asked you to come up with the controllable margin, total contribution, CPC, and operating income. For guidance, review Exhibit 18. on page 815 in the text. Contribution Margin Controllable Margin Total CPC Operating Income Hint: Enter values in this color cell. service to the hotel’s guests, maintaining an 80 percent occupancy rate, improving the average rate received per room to $88 from the current $85, and achieving a savings of 5 percent on all hotel costs. The hotel’s owner, a partnership of seven people who own several hotels in the region, want to structure Ramon’s future compensation to objectively reward him for achieving these goals. In the past, he has been paid an annual salary of $72,000 with no incentive pay. The incentive plan the partners developed has each of the goals weighted as follows: Measure Operating within 95 percent of expense budget Average room rate If Ramon achieves all of these goals, the partners determined that his performance should merit a bonus of $23,000. The partners also agreed that his salary would be reduced to $60,000 because of the addition of the bonus. The goal measures used to compensate Ramon are as follows: Compensation: 40 percent weight x $23,000 target reward = $9,200 Compensation: 25 percent weight x $23,000 target reward = $5,750 Compensation: 35 percent weight x $23,000 target reward = $8,050 Ramon’s new compensation plan will thus pay him a $60,000 salary…