Marian Corporation Has Two Separate Divisions That Operate as Profit

question 78

Multiple Choice

Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: $$\begin{array} { l r r } & \text { Black Division } & \text { Navy Division } \\\text { Sales (net) } & \$ 200,000 & \$ 400,000 \\\text { Salary expents } & 28,000 & 48,000 \\\text { Cost af goods sold } & 100,000 & 159,000\end{array}$$ 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 departmental income for the Black and Navy Divisions, respectively.

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

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