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Category > Accounting Posted 11 Jul 2017 My Price 6.00

QUESTION 15

QUESTION 15

  1. Sondi, Inc. has two divisions, Pickens and Sobo. Following is the income statement for the previous year:
  3.  PickinsSoboTotalSales $     600,000 $     400,000 $  1,000,000Variable Costs         195,000         250,000         445,000Contribution Margin         405,000         150,000         555,000Fixed Costs (allocated)         175,000         170,000         345,000Profit Margin $     230,000 $      (20,000) $     210,000
  4. Of the total fixed costs, $300,000 are committed fixed costs that are allocated equally between the divisions. How much did the Sobo division incur in direct fixed costs? 
  5. A.$20,000
  6. B.$300,000
  7. C.$170,000
  8. D.$150,000

 

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SuperTutor
(15)
Status NEW Posted 11 Jul 2017 09:07 AM My Price 6.00

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