SALES GROSS PROFIT DEPARTMENT A DEPARTMENT B TOTAL $559,500 $440,500 $1,000,000 $100,500 $101,000 $201,500 Indirect costs...

Question

Question

SALES GROSS PROFIT DEPARTMENT A DEPARTMENT B TOTAL $559,500 $440,500 $1,000,000 $100,500 $101,000 $201,500 Indirect costs inc

business accounting

Answer 1

Answer #1

Solution:

Net income for entire firm = Gross profit - Indirect expenses

= $201,500 - ($24,000 + $50,000)

= $127,500

Hence option c is correct.

Answer 2

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