Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: $\begin{array}{rrrrr}
&&&&\text { Indirect }\
\text { Dept.} &\text {Sales } & \text { Cost of Goods Sold}&\text { Direct Expenses}&\text { Expenses }\
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000& 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$

A) 52.5%
B) 20.0%
C) 35.7%
D) 30.0%
E) 57.1%

Question

Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: $\begin{array}{rrrrr}
&&&&\text { Indirect }\
\text { Dept.} &\text {Sales } & \text { Cost of Goods Sold}&\text { Direct Expenses}&\text { Expenses }\
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000& 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$

A) 52.5%
B) 20.0%
C) 35.7%
D) 30.0%
E) 57.1%

Quizplus · Accepted Answer

The Answer of Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: $\begin{array}{rrrrr}
&&&&\text { Indirect }\
\text { Dept.} &\text {Sales } & \text { Cost of Goods Sold}&\text { Direct Expenses}&\text { Expenses }\
1 & \$ 1,000,000 & \$ 700,000 & \$ 100,000 & \$ 80,000 \
2 & 400,000 & 150,000& 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000
\end{array}$

A) 52.5%
B) 20.0%
C) 35.7%
D) 30.0%
E) 57.1%

Ultimo Co Operates Three Production Departments as Profit Centers A) 525% B) 20

Ultimo Co Operates Three Production Departments as Profit Centers A) 525%
B) 20