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Fallow Corporation Has Two Separate Profit Centers

Question 27

Multiple Choice

Fallow Corporation has two separate profit centers.The following information is available for the most recent year: Fallow Corporation has two separate profit centers.The following information is available for the most recent year: 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) $120,000. B) $95,000. C) $94,000. D) $69,000. E) $54,000. 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) $120,000.
B) $95,000.
C) $94,000.
D) $69,000.
E) $54,000.

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