Using the data from the Koko Company, determine the divisional income from operations for the A and B regions.
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|
A Region
|
B Region
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|
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Sales
|
$600,000
|
$900,000
|
|
|
Cost of goods sold
|
200,000
|
350,000
|
|
|
Selling expenses
|
150,000
|
275,000
|
|
|
|
|
|
|
|
Service department expenses
|
|
|
|
|
Purchasing
|
|
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$80,000
|
|
Payroll accounting
|
|
|
40,000
|
|
|
|
|
Allocate service department expenses proportional to the sales of each region.