Reference: 22_02
Jamesway Corporation Has Two Separate Divisions That Operate

question 79

Short Answer

Reference: 22_02
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
$$\begin{array} { l c c c } & \text { White } & & \text { Grey } \\& \text { Division } & & \text { Division } \\ \text { Sales (nat) } & \$ 200,000 & & \$ 400,000 \\\text { Salary expense } & 28,000 & & 48,000 \\\text { Cost of goods sold } & 100,000 & & 159,000\end{array}$$ The White Division occupies 20,000 square feet in the plant. The Grey 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.
-Gross profit for the White and Grey Divisions is:
$\begin{array}{lll} &&\text {White}&&\text {Grey}\end{array}$
A. $\begin{array}{lll}& \$ 72,000 & \$ 193,000 \\\end{array}$
B. $\begin{array}{lll} & \$ 172,000 & \$ 352,000 \\\end{array}$
C. $\begin{array}{lll}& \$ 100,000 & \$ 241,000 \\\end{array}$
D. $\begin{array}{lll} & \$ 52,000 & \$ 163,000 \\\end{array}$
E. $\begin{array}{lll} & \$ 72,000 & \$ 163,000\end{array}$

---

Definitions:

Academic Success

Achievement in educational settings, typically measured by grades, test scores, degree completion, or other academic milestones.

Resiliency

The capacity to recover quickly from difficulties; emotional strength and adaptability in the face of adversity.

Assimilation

A process whereby a previously distinct ethnic group merges socially into another group—usually a dominant or mainstream society. Forms of assimilation include acculturation, structural assimilation, marital assimilation, and identificational assimilation.

Acculturation

A form of assimilation wherein an ethnic group or individual takes on the cultural ways of another group, usually that of mainstream culture, often at the expense of traditional cultural ways.