Mach CoOperates Three Production Departments as Profit Centers A)8%
B)40

Multiple Choice

Mach Co.operates three production departments as profit centers.The following information is available for its most recent year.Department 1's contribution to overhead as a percent of sales is:
Cost of Direct Indirect
Dept.Sales Goods Sold Expenses Expenses
$$\begin{array} { r r r r r } 1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \\2 & 400,000 & 150,000 & 40,000 & 100,000 \\3 & 700,000 & 300,000 & 150,000 & 20,000\end{array}$$

A) 8%.
B) 40%.
C) 20%.
D) 30%.
E) 12%.