Marian Corporation Has Two Separate Divisions That Operate as Profit

question 72

Multiple Choice

Marian Corporation has two separate divisions that operate as profit centers.The following information is available for the most recent year: The Black Division occupies 20,000 square feet in the plant.The Navy Division occupies 30,000 square feet.Rent is an indirect expense and is allocated based on square footage.Rent expense for the year was $50,000.Compute gross profit for the Black and Navy Divisions,respectively.

• A)$72,000;$193,000.
• B)$172,000;$352,000.
• C)$100,000;$241,000.
• D)$52,000;$163,000.
• E)$72,000;$163,000.

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Definitions:

Specialty Products

Goods or services that are perceived as unique or high-value by consumers, often requiring a significant effort to search for and purchase.

Shopping Products

Goods that require consumer research and comparison of brands before purchase because of their higher price or quality, such as appliances or clothing.

Product Mix

The assortment of product lines and individual goods and services that a firm offers to consumers and business users.

Product Line

Group of related products marked by physical similarities or intended for the same market.