Fallow Corporation has two separate profit centers. The following information is available for the most...
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Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net) $ 240,000 $ 390,000 Salary expense 30,000 44,000 Cost of goods sold 92,000 191,000 The West Division occupies 6,000 square feet in the plant. The East Division occupies 3,600 square feet. Rent, which was $ 48,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division.
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