Answer:
The correct answer is C: $70,000
Explanation:
Giving the following information:
Corporate legal office salaries $68,000
Shoe Department cost of sales-Brentwood Store $29,000
Corporate headquarters building lease $86,000
Store manager's salary-Brentwood Store $12,000
Shoe Department sales commissions-Brentwood Store $5,000
Store utilities-Brentwood Store $10,000
Shoe Department manager's salary-Brentwood Store $4,000
Central warehouse lease cost $7,000
Janitorial costs-Brentwood Store $10,000
The Brentwood Store is just one of many stores owned and operated by the company.
The Shoe Department is one of many departments at the Brentwood Store.
The central warehouse serves all of the company's stores.
Direct Costs of the shoe department:
Shoe Department cost of sales-Brentwood Store $29,000
Store manager's salary-Brentwood Store $12,000
Shoe Department sales commissions-Brentwood Store $5,000
Store utilities-Brentwood Store $10,000
Shoe Department manager's salary-Brentwood Store $4,000
Janitorial costs-Brentwood Store $10,000
Total= $70,000
