Franklin,Inc

question 71

Multiple Choice

Franklin,Inc.has two divisions,Seward and Charles.Following is the income statement for the previous year: Of the total fixed costs,$300,000 are common fixed costs that are allocated equally between the divisions.How much did the Charles division incur in direct fixed costs?

• A)$20,000
• B)$150,000
• C)$170,000
• D)$300,000

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Definitions:

Foreign Subsidiary

A foreign subsidiary is a company partly or wholly owned by another company, known as the parent company, and is based in a country other than the one where the parent company is located.

Exchange Risks

The potential for investors to experience losses due to fluctuations in currency exchange rates.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.

Initial Cost

The upfront expenditure involved in acquiring an asset, starting a project, or pursuing an investment.