The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Cardoba Inc. are as follows:                                                           Dept. A    Dept. B        Total Sales                                                  $420,000  $290,000       $710,000   Gross profit                                        243,000   197,000           440,000   Direct operating expenses                 205,000    118,000          323,000   Indirect operating expenses                                                    160,000   Help compute the departmental direct operating margin and direct operating margin percentage for each department.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 3CE
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The sales, gross profit, and direct and indirect operating expenses of Departments A and B of Cardoba Inc. are as follows:

                                                          Dept. A    Dept. B        Total

Sales                                                  $420,000  $290,000       $710,000

 

Gross profit                                        243,000   197,000           440,000

 

Direct operating expenses                 205,000    118,000          323,000

 

Indirect operating expenses                                                    160,000

 

Help compute the departmental direct operating margin and direct operating margin percentage for each department.

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