Question
The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31: Software Division Hardware Division Corporate
The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31:
| Software Division | Hardware Division | Corporate Total |
Cost of goods sold | $47,200 | $30,720 |
|
Divisional Operating Expenses | 27,200 | 20,040 |
|
Net sales | 95,000 | 64,000 |
|
Interest expense |
|
| $ 2,040 |
General corporate overhead |
|
| 18,160 |
Income tax expense |
|
| 4,700 |
What is the net income from operations for the Software Division? This amount could also be called the Software Divisions contribution to overhead.
a. $13,240
b. $20,600
c. $33,280
d. $47,800
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