The Sales, Gross Profit, and Direct and Indirect Operating Expenses

question 34

Essay

The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Wilmont Corporation are as follows: $\begin{array}{lrrr}&\text { Dept. A }&\text {Dept. B } &\text { Total }\\\text { Sales } & \$ \overline{400,000} & \$ \overline{310,000} & \$ 71 \overline{0,000} \\\text { Gross profit } & 270,000 & 180,000 & 450,000 \\\text { Direct operating expenses } & 174,000 & 96,000 & 270,000 \\\text { Indirect operating expenses } & & & 90,000\end{array}$ Required:
Compute the departmental direct operating margin and direct operating margin percentage for each department.

---

Definitions:

Communist

A political and economic ideology advocating for a classless society, where property and resources are communally owned.

Socialist

Pertaining to a political and economic theory advocating for the means of production, distribution, and exchange to be owned or regulated by the community as a whole.

Political Systems

Political systems refer to the set of formal legal institutions that constitute a government or a state.

Individualistic Systems

Societal frameworks where personal independence and self-reliance are emphasized over collective goals, often leading to a strong sense of competition.