Sports apparel department's gross profit is $300,000; clothing department gross profit is $300,000; indirect advertising expense is $6,000. Indirect expense charged to the clothing apparel department based on gross profit would be $3,000.

Question

Quizplus · Accepted Answer

Since both departments have the same gross profit, the indirect advertising expense of $6,000 would be evenly divided between them, resulting in $3,000 charged to each.

Sports Apparel Department's Gross Profit Is $300,000; Clothing Department Gross