Athletic Apparel and Sports Supplies are departments of World of Sports. Sheila manages both departments and employs three experts. Falana works full-time at Athletic Apparel and receives $1,000 each month; Carlos was originally hired to work full-time at Sports Supplies, but now works 60% of the time at Athletic Apparel and 40% of the time at Sports Supplies and receives $1,200 each month; Ana works full-time at Sports Supplies and receives $1,100 each month. To compute departmental operating income, how much salary expense would Sheila record?

Question

Quizplus · Accepted Answer

To compute departmental operating income, we only consider the expenses related to each department.

For Athletic Apparel, the total salary expense is:

$1,000 for Falana (full-time)
$1,200 x 60% = $720 for Carlos
Total = $1,000 + $720 = $1,720

For Sports Supplies, the total salary expense is:

$1,200 x 40% = $480 for Carlos
$1,100 for Ana
Total = $480 + $1,100 = $1,580

Therefore, the total salary expense for both departments is:

$1,720 for Athletic Apparel + $1,580 for Sports Supplies = $3,300

So the answer is C, $1,720 for Athletic Apparel and $1,580 for Sports Supplies.

Athletic Apparel and Sports Supplies Are Departments of World of Sports