Ultimo Co Operates Three Production Departments as Profit Centers A) 525%
B) 57

question 34

Multiple Choice

Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: $\begin{array}{ccccc}\text{Dept.}&\text {Sales}&\text {Cost of Goods Sold}&\text {Direct Expenses}&\text {Indirect Expenses}\\1&\$ 1,000,000 &\$ 700,000 & \$ 100,000 &\$80,000 \\2 & 400,000 & 150,000 & 40,000 & 100,000 \\ 3 & 700,000 & 300,000 & 150,000 & 20,000 \\\end{array}$

• A) 52.5%
• B) 57.1%
• C) 30.0%
• D) 35.7%
• E) 20.0%

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Definitions:

VC

Venture Capital, a type of private equity and a form of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Growing

The process of increasing in size, quantity, value, or strength.

Corporate Angels

Wealthy companies that invest in small startups or entrepreneurs, often for strategic purposes as well as financial return.

Venture

An undertaking that is risky or daring but may lead to profit or success in a business context.