Determine the divisional income from operations

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The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. Additional data for the two divisions is following below:

                                    Retail Division               Commercial Division

Sales                      $945,000                        $966,000

Cost of goods sold    504,000                            559,300

Selling expenses       156,800                            175,000

Question 1: Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations.

Reference no: EM132472558

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