Using the data below for Ace Guitar Company:     Region A       Region B     Sales $500,000     $900,000     Cost of goods sold 200,000     300,000     Selling expenses 150,000     275,000                   Service department expenses:                    Purchasing           $90,000         Payroll accounting           30,000   Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A Income: Region B Income:

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Using the data below for Ace Guitar Company:

    Region A       Region B    
Sales $500,000     $900,000    
Cost of goods sold 200,000     300,000    
Selling expenses 150,000     275,000    
             
Service department expenses:            
       Purchasing           $90,000
        Payroll accounting           30,000

 

Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place.

Region A Income:

Region B Income:

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