Jamesway Corporation Has Two Separate Divisions That Operate as Profit

question 43

Multiple Choice

Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
$\begin{array}{lrr}&\text { White } & \text { Grey } \\&\text { Division } & \text { Division }\\\hline\text { Sales (net) } & \$ 200,000 & \$ 400,000 \\\text { Salary expense } & 28,000 & 48,000 \\\text { Cost of goods sold } & 100,000 & 159,000\end{array}$
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:
$\quad\text { White } \quad \text { Grev }$
(A) $\$ 72,000 \quad \$ 193,000$
(B) $\$ 172,000 \quad \$ 352,000$
(C) $\$ 100,000 \quad \$ 241,000$
(D) $\$ 52,000 \quad \$ 163,000$
(E) $\$ 72,000 \quad \$ 163,000$

• A) A Above.
• B) B Above.
• C) C Above.
• D) D Above.
• E) E Above.

---

Definitions:

Communicate Strategies

The planning and execution of conveying information and ideas effectively to achieve business objectives.

Basic Communication Process

A series of steps that include the generation of a message, its transmission through a selected channel, reception, and the subsequent interpretation by the recipient.

Encoding

The process of converting information or data into a particular form, especially within the context of communication or data processing.

Decoding

The process of interpreting or understanding information, symbols, or messages in communication.