Krikorian Corporation Has Two Operating Divisions-An Atlantic Division and a Pacific

question 9

Multiple Choice

Krikorian Corporation has two operating divisions-an Atlantic Division and a Pacific Division.The company's Logistics Department services both divisions.The variable costs of the Logistics Department are budgeted at $37 per shipment.The Logistics Department's fixed costs are budgeted at $330,600 for the year.The fixed costs of the Logistics Department are determined based on peak-period demand. How much Logistics Department cost should be charged to the Altlantic Division at the end of the year for performance evaluation purposes?

• A)$198,840
• B)$272,600
• C)$169,200
• D)$218,080

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Definitions:

Percentage of Sales

A financial ratio that compares a company's profitability, expanses, or other financial indicators to its total sales, often expressed as a percentage.

Percentage of Receivables

A method used to estimate the amount of receivables that will not be collected by calculating a percentage based on historical data.

Key Parties

Key parties refer to the main individuals or groups involved in a specific area of business, such as stakeholders in a project or transaction.

Note

A financial document that represents an agreement for one party to pay another by a certain date, often used to denote debt.