Question
1. Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $380,000
1. Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $380,000 $530,000 Salary expense 44,000 58,000 Cost of goods sold 134,000 247,000 The West Division occupies 9,500 square feet in the plant. The East Division occupies 5,700 square feet. Rent, which was $ 76,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division. $196,500. $149,000. $148,000. $154,500. $139,500.
2.Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $6,050,000; sales of $6,125,000; cost of goods sold of $3,475,000; and operating expenses of $1,247,000. Compute the division's return on investment: rev: 04_03_2018_QC_CS-123530 22.91%. 20.4% 23.2%. 16.3%. 20.6%.
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