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. $54,000.
B. $120,000.
C. $95,000.
D. $69,000.
E. $94,000.
Answer: D
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Upon graduating from college, Kathy announced her plans to enter law school the following fall and to marry Rick in December. Kathy's father was afraid that marriage during her first year in law school might cause her to fall behind in her studies or cause her to drop out of school. He called Kathy and promised her $10,000 if she postponed her wedding until after completion of her first year of
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