Solution-Determine the divisional income from operations

Determine the divisional income from operations

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Question - Using the data below for the Ace Guitar Company:

	A Region	B Region
Sales	$500,000	$900,000
Cost of goods sold	200,000	300,000
Selling expenses	150,000	275,000

Service department expenses:
Purchasing			$90,000
Payroll accounting			30,000

Required - Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.

Reference no: EM133158242

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Determine the divisional income from operations

Reference no: EM133158242

Reference no: EM133158242

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