Answer the following question with the data contained in Table 1 below: Table 1. Profit Center Analysis

Answer the following question with the data contained in Table 1 below:

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Table 1. Profit Center Analysis Company New Construction Remodel Industrial Retrofit Account Earnings (revenue) Cost of Construction Labor 10,000,000 1,000,000 2,500,000 500,000 1,600,000 4,000.000 3,200.000 200.000 9,000,000 1,000,000 630,000 2620,000 3,200 000 200.000 6,650,000 350,000 620,000 1380.000 350,000 Material Subcontracts Other Direct Cost JOH) Total Direct Cest 2,000,000 500,000 350,000 150,000 Gross Profit Operating Expenses Variable Operating Expense Auto and Truck Communications lasurance (Work-in progress) Interest (Work-in progress) Other Varsable Expense Tetal Variable Operating Expense Contributions Depreciation (Auto and Truck) Depreciation (Buslding) Insurance (Auto and Truck) Interest (Auto and Track) Rent Salanes 150,000 60.000 237,000 100,000 20.000 567,000 5.000 72.000 3,000 29.000 20.000 44,000 300,000 10 000 483,000 1,050,000 50,000 Ocher Fixed Expense Total Fised Operating Expense Tetal Operating Expense Net Profit (before tas) Based on the number of vehicies for each profit center (5 vehicles for New Construction. 14 for Remodel, and 6 for Industrial Retrofit), what amount of Auto and Truck expense should be allocated to the profit center of New Construction? O 20.000 O 18.000 O 30.000 O 30.000 Table 1. Profit Center Analysis Company New Construction Remodel Industrial Retrofit Account Earnings (revenue) Cost of Construction Labor 10,000,000 1,000,000 2,500,000 500,000 1,600,000 4,000.000 3,200.000 200.000 9,000,000 1,000,000 630,000 2620,000 3,200 000 200.000 6,650,000 350,000 620,000 1380.000 350,000 Material Subcontracts Other Direct Cost JOH) Total Direct Cest 2,000,000 500,000 350,000 150,000 Gross Profit Operating Expenses Variable Operating Expense Auto and Truck Communications lasurance (Work-in progress) Interest (Work-in progress) Other Varsable Expense Tetal Variable Operating Expense Contributions Depreciation (Auto and Truck) Depreciation (Buslding) Insurance (Auto and Truck) Interest (Auto and Track) Rent Salanes 150,000 60.000 237,000 100,000 20.000 567,000 5.000 72.000 3,000 29.000 20.000 44,000 300,000 10 000 483,000 1,050,000 50,000 Ocher Fixed Expense Total Fised Operating Expense Tetal Operating Expense Net Profit (before tas) Based on the number of vehicies for each profit center (5 vehicles for New Construction. 14 for Remodel, and 6 for Industrial Retrofit), what amount of Auto and Truck expense should be allocated to the profit center of New Construction? O 20.000 O 18.000 O 30.000 O 30.000

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Amount of auto and truck expense to be allocated to ... View the full answer