Question 9 10 points Answer the following question with the data contained in Ta

Question

Question 9 10 points Answer the following question with the data contained in Table 1 below Table 1. Profit Center Analysis Labor 2,620,00 4,000,000 200,000 200,000 Tetal Direct Cost Gross Profit 6,650,000 350.000 350,000 150,000 500 Auto and Truck 60,000 237,000 100,000 ork Other Variable Expense Contributions 5,000 tion (Auto and and T (Auto and Truck Rent Salaries 44,000 Tetal Fixed Operating E Total Operating Expense Net Profit Based on the number of vehicles for each proft center (5 vehicles for New Construction, 14 for Remodel, and 6 for Industrial Retrofit), what amount of Auto and Truck expense should be allocated to the profit center of New Construction? O 20,000 O 18,000 O 36,000 O 30,000

Explanation / Answer

as per the statement above the total AUTO AND TRUCK EXPENSES=150000

and per the given data total number of vehicles =5+14+6=25

share of auo and truck expenses to be allocated=150000*5/25=30000

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