Marian Corporation Has Two Separate Divisions That Operate as Profit

question 208

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:

Chemiosmosis

The movement of ions across a semipermeable membrane, down their concentration gradient, which is used to generate ATP in cells.

Membrane

A selective barrier that encloses the cell or organelles within a cell, controlling the movement of substances in and out.

Mitochondria

Organelles responsible for generating most of the cell's supply of adenosine triphosphate (ATP), playing a key role in energy metabolism.

Gradient Formation

The process by which a concentration gradient of a particular molecule or ion is established, often across a biological membrane.