Marian Corporation Has Two Separate Divisions That Operate as Profit

question 101

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 departmental income for the Black and Navy 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.

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Definitions:

Whole-Grain

Refers to grains that have all of their parts intact: the bran, germ, and endosperm, providing more nutrients and fiber.

Fructose

A simple sugar found in many plants that is sweeter than glucose and used in various foods and beverages.

Sorghum

A grain that serves as both food and fodder, known for its drought tolerance and nutritional value.

Nutrient-Rich Foods

Foods that contain high levels of vitamins, minerals, and other beneficial substances with relatively few calories.