Fallow Corporation Has Two Separate Profit Centers

question 27

Multiple Choice

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.

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Definitions:

Keynesian Range

A portion of the Keynesian aggregate supply curve where total production is influenced by changes in aggregate demand, leading to fluctuations in output and employment levels.

Aggregate Demand

Aggregate demand represents the total demand for goods and services within a specified economy at a given overall price level and in a given time period.

Determinant of Employment

Factors that influence the hiring decisions of employers and the availability of jobs within an economy.

Demand Creates

The assertion that consumer demand drives the production and supply of goods and services in the market.