Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $200,000  $350,000  Salary expense  26,000   40,000  Cost of goods sold  80,000   175,000  The West Division occupies 5,000 square feet in the plant. The East Division occupies 3,000 square feet. Rent, which was $40,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.

A. $94,000.
B. $69,000.
C. $95,000.
D. $54,000.
E. $120,000.


Answer: B

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