Using the data from the Coffee & Cocoa Company,
(a) Determine the divisional income from operations for the THREE regions by allocating the service department expenses proportional to the sales of the regions
(b) determine the increase or decrease in net income if C Region did not operate.
A Region - B Region - C Region
Sales $600,000 - $900,000 - $300,000
Cost of goods sold $200,000 - $350,000 - $190,000
Selling Expenses $150,000 - $275,000 - $100,000
Service Department expenses
Purchasing - - $120,000
Payroll accounting - - $80,000