Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead (in dollars) and what is the amount contributed? Dept.Sales Cost of Goods Sold Direct Expenses Indirect Expenses 1$1,000,000  $700,000   $100,000   $80,000  2 400,000   150,000    40,000    100,000  3 700,000   300,000    150,000    20,000  

A. Dept. 1; $1,000,000.
B. Dept. 2; $100,000.
C. Dept. 2; $150,000.
D. Dept. 3; $400,000.
E. Dept. 3; $250,000.


Answer: E

Business

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