Company C is composed of Division A and B. Division A has sales of ($200,000) to outside

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Company C is composed of Division A and B. Division A has sales of \($200,000\) to outside buyers and \($50,000\) to Division B. Division B has sales of \($300,000\) to outside buyers. The costs of Division A are \($120,000.\) The costs of Division B are \($200,000\) excluding the purchases from Division A. Company C headquarters allocates costs of

\($30,000\) to Division A and \($10,000\) to Division B.

What is the profit of the two divisions?

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Management Accounting In A Dynamic Environment

ISBN: 9780415839020

1st Edition

Authors: Cheryl S McWatters, Jerold L Zimmerman

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