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)		$	700,000			$	500,000
Salary expense			38,000				58,000
Cost of goods sold			200,000				169,000

The Black Division occupies 30,000 square feet in the plant. The Navy Division occupies 40,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $60,000. Compute gross profit for the Black and Navy Divisions, respectively.

Multiple Choice

• $500,000; $331,000.

• $162,000; $233,000.

• $662,000; $442,000.

• $162,000; $273,000.

• $132,000; $233,000.

  Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,160,000; sales of $4,585,000; cost of goods sold of $2,610,000; and operating expenses of $1,432,000. Assume a target income of 11% of average invested assets. Compute residual income for the division:

  Multiple Choice

• $85,400.

• $217,250.

• $42,900.

• $95,400.

• $59,730.