Division X reports an income from operations of $300,000. Its total service department charges are $500,000, and operating expenses are $2,200,000. What are the total revenues for Division X? a. $2,700,000 b. $3,000,000 c. $2,200,000 d. $3,000,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...
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Division X reports an income from operations
of $300,000. Its total service department
charges are $500,000, and operating expenses
are $2,200,000. What are the total revenues
for Division X?
a. $2,700,000
b. $3,000,000
c. $2,200,000
d. $3,000,000
Transcribed Image Text:Division X reports an income from operations of $300,000. Its total service department charges are $500,000, and operating expenses are $2,200,000. What are the total revenues for Division X? a. $2,700,000 b. $3,000,000 c. $2,200,000 d. $3,000,000
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