Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year: Seward Charles Sales $ 600,800 $ 400,900 Variable Costs 196,000 250,900 Contribution Margin $ 404,800 $ 150,000 Fixed Costs 175,900 170,700 Profit Margin $ 228,900 $ (20,700 ) Of the total fixed costs, $300,900 are common fixed costs that are allocated equally between the divisions. How much did the Charles division incur in direct fixed costs

The amount incurred by Charles division in the direct fixed cost is $20,250

Explanation:

The computation of the amount incurred in the direct fixed cost is shown below:

Direct fixed cost is

= Charled fixed cost - common fixed cost ÷ 2

= $170,700 - ($300,900) ÷ 2

= $170,700 - $150,450

= $20,250

hence, the amount incurred by Charles division in the direct fixed cost is $20,250

We simply applied the above formula so that the correct value could come

And, the same is to be considered

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.