Question 10 10 points Answer the following question with the data contained in T

Question

Question 10 10 points Answer the following question with the data contained in Table 1 below Table 1. Profit Center Analysis Labor 2,620,00 0,000 4,000,000 200,000 200,000 Tetal Direct Cost Gross Profit 350,000 1s0 6,650,000 350 Variable Operating Expense Auto and Truck 60,000 ork 100,000 Other Variable Expense Total Variable 5,000 ton (Auto and urance (Auto and T (Auto and 44,000 Tetal Fixed Operating E Net Profit By default base, what amount of Salaries should be allocated to the profit center of Remodel? O 50.000 O 15,000 75,000 O 120,000 483,000

Explanation / Answer

Salaraies will be allocated based on % of revenue

Since Remodel has been allocated with $2500000 of revenue out of Total $10,000000

% share = 2500000/10000000*100= 25%

Amount of salaries allocated to remodel = 0.25*300000= $75000

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