Question: Answer this question based on the data in the following table. By default base of earnings, Interest expense was allocated to profit centers in the


Answer this question based on the data in the following table. By default base of earnings, Interest expense was allocated to profit centers in the amounts of: $1,800,000 $1,080,000 $720,000 Earnings Cost of Construction Labor Material Total Direct Cost $500,000 $900,000 $1,400,000 $300,000 $450,000 $750,000 $200,000 $450,000 $650,000 Gross Profit S400,000 $330,000 $70,000 Variable Operating Expense Auto and Truck $60,000 Interest $10,000 Total Variable $70,000 Operating Expense Fixed Operating Expense Depreciation $20,000 Salaries $80,000 Total Fixed Expense $100,000 S170,000 Total Operating Expense Net Profit (before S230,000 tax) Tax (50%) $115,000 Net Profit (after tax) $115,000 O A $4,000 to New Work, $6,000 to Repairs B) $2,000 to New Work, $3,000 to Repairs C) $8,000 to New Work, $2,000 to Repairs D) $6,000 to New Work, $4,000 to Repairs
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