Item 30

Item 30

(LO 9) 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)   $ 500,000     $ 430,000     Salary expense     31,000       51,000     Cost of goods sold     130,000       162,000    

The Black Division occupies 23,000 square feet in the plant. The Navy Division occupies 33,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $53,000. Compute gross profit for the Black and Navy Divisions, respectively.

Multiple Choice

• $469,000; $379,000.
• $99,000; $217,000.
• $76,000; $184,000.
• $370,000; $268,000.
• $99,000; $184,000.