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

Answer the following question with the data contained in Table 1 below. By default base of earnings, what amount of Other Fixed Expense should be allocated to the profit center of New Construction? Table 1. Profit Center Analysis Company New Construction Remodel Industrial Retrofit Account $ $ $ S Earnings (revenue) 10,000,000 7,000,000 2,500,000 500,000 Cost of Construction Labor 1,600,000 630,000 620,000 350,000 Material 4,000,000 2,620,000 1,380,000 0 Subcontracts 3,200,000 3,200,000 0 0 Other Direct Cost (JOH) 200.000 200,000 0 0 Total Direct Cost 9,000,000 6,650,000 2,000,000 350,000 Gross Profit 1,000,000 350,000 500,000 150,000 Operating Expenses Variable Operating Expense Auto and Truck 150,000 Communications 60,000 Insurance (Work in progress) 237,000 Interest (Work-in-progress) 100,000 Other Variable Expense 20.000 Total Variable Operating Expense 567,000 Contributions 5.000 Donacion Auto and Toca Depreciation (Auto and Truck) Depreciation (Building) Insurance (Auto and Truck) Interest (Auto and Truck) Rent Salaries Other Fixed Expense Total Fixed Operating Expense Total Operating Expense Net Profit (before tax) 72,000 3,000 29,000 20,000 44,000 300,000 - 10,000 483,000 1,050,000 -50,000 A) 5,000 OB) 7,000 C) 1,000 OD) 3,000
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