The energy division of a company produced two products, oil and gas. Information is:
Net sales were $250,000 (oil) and $400,000 (gas)
Oil’s variable costs were $100,000 (product) and $50,000 (selling)
Gas’s variable costs were $300,000 (product) and $4,000 (selling)
Controllable fixed costs were $25,000 (oil) and $30,000 (gas)
Uncontrollable fixed costs were $45,000 (oil) and $50,000 (gas)
Nontraceable costs that are attributable to both oil and gas total $35,000.
Calculate oil’s controllable contribution margin.