Fallow Corporation Has Two Separate Profit Centers The West Division Occupies 5,000 Square Feet in the Plant

Multiple Choice

Fallow Corporation has two separate profit centers. The following information is available for the most recent year: $\begin{array}{lrr}&\text { West Division}&\text { East Division}\\\text { Sales (net) } & \$ 200,000 & \$ 350,000 \\\text { Salary expense } & 26,000 & 40,000 \\\text { Cost of goods sold } & 80,000 & 175,000\end{array}$ 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) $69,000.
B) $94,000.
C) $54,000.
D) $95,000.
E) $120,000.