Answer:
White Division Gross Profit  = $72,200 
Grey Division Gross Profit =  $247,700
Explanation:
                                                      White Division    Grey division
Sales (net)                                      $270,000            $540,000
Less: Cost of goods sold              <u> $135,000  </u>          <u>$202,500</u>
Gross Margin                                 $135,000             $337,500
Less: Salary Expenses                   $37,800              $64,800
Rent                                                 <u>$25,000</u>              <u>$25,000</u>
Gross Profit                                   <u> $72,200 </u>             <u>$247,700</u>
The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each              for rent