Assignment:
Using the data from the Koko Company, determine the divisional income from operations for the A and B regions. Allocate service department expenses proportional to the sales of each region:
A Region
B Region
Sales
$600,000
$900,000
Cost of goods sold
200,000
350,000
Selling expenses
150,000
275,000
Service department expenses
Purchasing
$80,000
Payroll accounting
40,000
Provide complete and step by step solution for the question and show calculations and use formulas.