Question - Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
White Division Grey Division
Sales (net) $800,000 $310,000
Salary expense 19,000 39,000
Cost of goods sold 180,000 150,000
The White Division occupies 11,000 square feet in the plant. The Grey Division occupies 21,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $41,000. Compute gross profit for the White and Grey Divisions, respectively.
$781,000; $271,000.
$161,000; $100,000.
$620,000; $160,000.
$161,000; $121,000.
$150,000; $100,000.