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Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $ 300,000
Fallow Corporation has two separate profit centers. The following information is available for the most recent year:
West Division | East Division | ||||||||
Sales (net) | $ | 300,000 | $ | 450,000 | |||||
Salary expense | 36,000 | 50,000 | |||||||
Cost of goods sold | 110,000 | 215,000 | |||||||
The West Division occupies 7,500 square feet in the plant. The East Division occupies 4,500 square feet. Rent, which was $ 60,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
Multiple Choice
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$162,500.
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$125,000.
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$124,000.
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$116,500.
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$101,500.
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