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Using the data from the Koko Company, determine the divisional income from operations for the A and B regions. I need to allocate service department expenses proportional to the sales of each region
A Region
B Region
Sales$600,000
$900,000
Cost of goods sold200,000
350,000
Selling expenses150,000
275,000
Service department expensesPurchasing$80,000
Payroll accounting40,000
How many of each should you purchase to minimize the total cost? (b) What is the total cost?
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