Marian Corporation Has Two Separate Divisions That Operate as Profit

question 35

Multiple Choice

Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: 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 gross profit for the Black and Navy Divisions, respectively.

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

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Definitions:

Sacajawea

A Lemhi Shoshone woman who is best known for her role as an interpreter and guide during the Lewis and Clark Expedition.

Lewis and Clark

Explorers Meriwether Lewis and William Clark, who led the early 19th-century expedition across the western United States to explore territories acquired in the Louisiana Purchase.

Shoshone Indian

A member of a Native American people originally from the western United States, including parts of California, Nevada, Utah, and Idaho.

Pacific Ocean

The largest and deepest of the Earth's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south.