Fallow Corporation Has Two Separate Profit Centers

Multiple Choice

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.