Jamesway Corporation Has Two Separate Divisions That Operate as Profit

question 85

Multiple Choice

Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: 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. Compute departmental income for the White and Grey Divisions, respectively.

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

---

Definitions:

Penalty

refers to a punishment imposed for breaking a law, rule, or contract.

Breach

An act of breaking or failing to observe a law, agreement, or code of conduct.

Wallace and Bruce

Refers to William Wallace and Robert the Bruce, key figures in the Scottish struggle for independence from England in the late 13th and early 14th centuries.

Restatement of Torts

A legal treatise produced by the American Law Institute that summarizes the general principles of tort law in the United States, including liability, negligence, and damages.