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Brittany Company's South and North Divisions are profit centers. The following information is given. Sales Cost of goods sold Gross profit Expenses Salaries Administrative Rent
Brittany Company's South and North Divisions are profit centers. The following information is given. Sales Cost of goods sold Gross profit Expenses Salaries Administrative Rent Advertising TOTAL EXPENSES Income (loss) South $150,000 80,000 70,000 30,000 20,000 15,000 8,000 73,000 $(3,000) North $180,000 105,000 75,000 32,000 28,000 10,000 3,000 73,000 $2,000 Among the expenses, Salaries and Advertising are direct expenses Administrative and Rent are common expenses incurred for the company and allocated to the divisions Regarding the performance evaluations of the managers of the divisions, which of the following is true? OA Because income of the North Division is greater than that of the South Division, the North Division's manager did the better job than the South Division's manager. O B. Because Departmental contribution to overhead of the North Division is greater than that of the South Division, the North Division's manager did the better job than the South Division's manager OC. Because Gross profit of the North Division is greater than that of the South Division, the North Division's manager did the better job than the South Division's manager O D. Because Departmental contribution to overhead of the South Division is greater than that of the North Division, the South Division's manager did the better job than the North Division's manager. OE. Because Total direct expense of the South Division is greater than that of the North Division, the South Division's manager did the better job than the North Division's manager.
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