Question - Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:
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Black Division
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Navy Division
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Sales (net)
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$800,000
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$390,000
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Salary expense
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27,000
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47,000
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Cost of goods sold
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100,000
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158,000
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The Black Division occupies 19,000 square feet in the plant. The Navy Division occupies 29,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $49,000. Compute gross profit for the Black and Navy Divisions, respectively.