Question: Answer the following question with the data contained in Table 1 below. By default base of earnings, what amount of Salaries should be allocated to



Answer the following question with the data contained in Table 1 below. By default base of earnings, what amount of Salaries should be allocated to the profit center of Remodel? Table 1. Profit Company 10,000,000 1.600.000 4,000,000 3,200,000 200.000 9,000,000 1,000,000 Account Earnings (revenue) Cost of Construction Labor Material Subcontracts Other Direct Cost (JOH) Total Direct Cost Gross Profit Operating Expenses Variable Operating Expense Auto and Truck Communications Insurance (Work-in-progress) Interest (Work-in-progress) Other Variable Expense Total Variable Operating Expense Contributions Depreciation (Auto and Truck) Depreciation (Building) Insurance (Auto and Truck) Interest (Auto and Truck) 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 Rent Salaries Other Fixed Expense Total Fixed Operating Expense Total Operating Expense Net Profit (before tax) Center Analysis New Construction Remodel $ 2.500.000 Industrial Retrofit $ 500,000 7,000,000 350,000 620,000 1,380,000 630,000 2,620,000 3,200,000 200.000 6,650,000 350,000 0 2,000,000 500,000 350,000 150,000 A) 50,000 B) 75,000 C) 120,000 D) 15,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
