Sarandon Company Has the Following Information Pertaining to Its Two

question 48

Multiple Choice

Sarandon Company has the following information pertaining to its two divisions for 2018: $\begin{array}{lrr}&\text { Division } A & \text { Division } B\\\text { Variable selling and admin. expenses } & \$ 35,000 & \$ 45,000 \\\text { Direct fixed manufacturing expenses } & 17,500 & 50,000 \\\text { Sales } & 100,000 & 200,000 \\\text { Direct fixed selling and admin. expenses } & 15,000 & 35,000 \\\text { Variable manufacturing expenses } & 20,000 & 50,000\end{array}$ Common expenses are $12,000 for 2018.
What is the operating income for Sarandon Company?

• A)$300,000
• B)$32,500
• C)$150,000
• D)$20,500

---

Definitions:

Endorphins

Endorphins are peptides produced by the central nervous system and the pituitary gland, known for their ability to reduce pain and boost happiness.

Antidepressant Drugs

Drugs used to treat depression, anxiety disorders, obsessive-compulsive disorder, and posttraumatic stress disorder. (Several widely used antidepressant drugs are selective serotonin reuptake inhibitors—SSRIs.)

Antipsychotic Drugs

Drugs used to treat schizophrenia and other forms of severe thought disorder.

Auditory Hallucinations

A condition where a person hears sounds or voices that do not exist outside their mind.