Cobb Company

BE10-8 For the year ending December 31, 2014, Cobb Company accumulates the follow- ing data for the Plastics Division which it operates as an investment center: contribution margin—$700,000 budget, $710,000 actual; controllable fixed costs—$300,000 budget,

$302,000 actual. Average operating assets for the year were $2,000,000. Prepare a respon- sibility report for the Plastics Division beginning with contribution margin.