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The Sales, Gross Profit, and Direct and Indirect Operating Expenses

Question 63

Essay

The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Wilmont Corporation are as follows:  Dept. A Dept. B  Total  Sales $400,000$310,000$710,000 Gross profit 270,000180,000450,000 Direct operating expenses 174,00096,000270,000 Indirect operating expenses 90,000\begin{array}{lrrr}&\text { Dept. A }&\text {Dept. B } &\text { Total }\\\text { Sales } & \$ \overline{400,000} & \$ \overline{310,000} & \$ 71 \overline{0,000} \\\text { Gross profit } & 270,000 & 180,000 & 450,000 \\\text { Direct operating expenses } & 174,000 & 96,000 & 270,000 \\\text { Indirect operating expenses } & & & 90,000\end{array} Required:
Compute the departmental direct operating margin and direct operating margin percentage for each department.

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