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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) $410,000 $560,000
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 |
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.
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