The income calculation for a divisional manager's return on investment should be based on:

A) divisional contribution margin.
B) profit margin controllable by the divisional manager.
C) profit margin traceable to the division.
D) division income before interest and income tax.

Divisional Contribution Margin

The difference between sales revenue and variable costs in a specific business division, used to cover fixed expenses and contribute to profits.

Divisional Manager

A manager responsible for overseeing a division within a company, including its resources, operations, and performance.

Profit Margin

A financial indicator showing the percentage of income surpassing the cost of goods sold, employed to evaluate a company's financial well-being.