Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. How much did the Charles division incur in direct fixed costs?
A) $20,000
B) $150,000
C) $170,000
D) $300,000

Question

Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year:  Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. How much did the Charles division incur in direct fixed costs?
A) $20,000 
B) $150,000 
C) $170,000 
D) $300,000

Quizplus · Accepted Answer

The Answer of Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year:  Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. How much did the Charles division incur in direct fixed costs?
A) $20,000 
B) $150,000 
C) $170,000 
D) $300,000