Fallow Corporation has two separate profit centers.The following information is available for the most recent year: The West Division occupies 5,000 square feet in the plant.The East Division occupies 3,000 square feet.Rent,which was $40,000 for the year,is an indirect expense and is allocated based on square footage.Compute operating income for the West Division.
A)$120,000.
B)$95,000.
C)$94,000.
D)$69,000.
E)$54,000.

Question

Fallow Corporation has two separate profit centers.The following information is available for the most recent year:  The West Division occupies 5,000 square feet in the plant.The East Division occupies 3,000 square feet.Rent,which was $40,000 for the year,is an indirect expense and is allocated based on square footage.Compute operating income for the West Division.
A)$120,000. 
B)$95,000. 
C)$94,000. 
D)$69,000. 
E)$54,000.

Quizplus · Accepted Answer

The Answer of Fallow Corporation has two separate profit centers.The following information is available for the most recent year:  The West Division occupies 5,000 square feet in the plant.The East Division occupies 3,000 square feet.Rent,which was $40,000 for the year,is an indirect expense and is allocated based on square footage.Compute operating income for the West Division.
A)$120,000. 
B)$95,000. 
C)$94,000. 
D)$69,000. 
E)$54,000.

Fallow Corporation Has Two Separate Profit Centers