Division M reports income from operations of $300,000. The division also incurs service department charges totaling $350,000 and has operating expenses of $2,150,000. What are the revenues for Division M? a. $2,500,000 b. $2,800,000 c. $2,450,000 d. $2,000,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Division M reports income from operations of $300,000. The
division also incurs service department charges totaling
$350,000 and has operating expenses of $2,150,000.
What are the revenues for Division M?
a. $2,500,000
b. $2,800,000
c. $2,450,000
d. $2,000,000
Transcribed Image Text:Division M reports income from operations of $300,000. The division also incurs service department charges totaling $350,000 and has operating expenses of $2,150,000. What are the revenues for Division M? a. $2,500,000 b. $2,800,000 c. $2,450,000 d. $2,000,000
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