| Fallow Corporation has two separate profit centers. The following information is available for the most recent year: |
| West Division | East Division | |
| Sales (net) | $410,000 | $560,000 |
| Salary expense | 47,000 | 61,000 |
| Cost of goods sold | 143,000 | 259,000 |
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The West Division occupies 10,250 square feet in the plant. The East Division occupies 6,150 square feet. Rent, which was $ 82,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division. |
$153,750.
$158,000.
$157,000.
$209,250.
$168,750.
West Division's Operating income is $1,68,750
Operating income for the West Division.
Sales $410,000
Cost of goods sold (1,43,000)
Gross profit 2,67,000
Less: Salary Expense (47,000)
Allocated rent (51,250)
($82,000 * 10250/16400)
West Division income 1,68,750
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Fallow Corporation has two separate profit centers. The following information is available for the most recent...
Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: Black Division Navy Division Sales (net) $ 300,000 $ 410,000 Salary Expense 29,000 49,000 Cost of goods sold 110,000 160,000 The Black Division occupies 21,000 square feet in the plant. The Navy Division occupies 31,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $51,000. Compute gross profit...