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: $\begin{array}{ccccc}
\text{Dept.}&\text {Sales}&\text {Cost of Goods Sold}&\text {Direct Expenses}&\text {Indirect Expenses}\
1&\$ 1,000,000 &\$ 700,000 & \$ 100,000 &
\$80,000 \
2 & 400,000 & 150,000 & 40,000 & 100,000 \
3 & 700,000 & 300,000 & 150,000 & 20,000 \
\end{array}$
A) 52.5%
B) 57.1%
C) 30.0%
D) 35.7%
E) 20.0%

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: $\begin{array}{ccccc}
\text{Dept.}&\text {Sales}&\text {Cost of Goods Sold}&\text {Direct Expenses}&\text {Indirect Expenses}\
1&\$ 1,000,000 &\$ 700,000 & \$ 100,000 &
\$80,000 \
2 & 400,000 & 150,000 &  40,000 & 100,000 \
 3 & 700,000 & 300,000 &  150,000 & 20,000 \
\end{array}$
A) 52.5%
B) 57.1%
C) 30.0%
D) 35.7%
E) 20.0%

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: $\begin{array}{ccccc}
\text{Dept.}&\text {Sales}&\text {Cost of Goods Sold}&\text {Direct Expenses}&\text {Indirect Expenses}\
1&\$ 1,000,000 &\$ 700,000 & \$ 100,000 &
\$80,000 \
2 & 400,000 & 150,000 &  40,000 & 100,000 \
 3 & 700,000 & 300,000 &  150,000 & 20,000 \
\end{array}$
A) 52.5%
B) 57.1%
C) 30.0%
D) 35.7%
E) 20.0%

Ultimo Co Operates Three Production Departments as Profit Centers A) 525% B) 57

Ultimo Co Operates Three Production Departments as Profit Centers A) 525%
B) 57