Using the data from Terrace Industries: District 1 District 2 Sales $300,000 $600,000 Cost of goods sold 120,000 150,000 Selling expenses 55,000 75,000 Support department expenses: Purchasing $70,000 Payroll accounting 80,000 Allocate support department expenses proportional to the sales of each district. Determine the divisional operating income for Districts 1 and 2. For interim calculations, do not round. For all other amounts, round to the nearest whole dollar. District 1 Operating Income $fill in the blank 1 District 2 Operating Income $fill in the blank 2
Using the data from Terrace Industries: District 1 District 2 Sales $300,000 $600,000 Cost of goods sold 120,000 150,000 Selling expenses 55,000 75,000 Support department expenses: Purchasing $70,000 Payroll accounting 80,000 Allocate support department expenses proportional to the sales of each district. Determine the divisional operating income for Districts 1 and 2. For interim calculations, do not round. For all other amounts, round to the nearest whole dollar. District 1 Operating Income $fill in the blank 1 District 2 Operating Income $fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the data from Terrace Industries:
| District 1 | District 2 | |||||
| Sales | $300,000 | $600,000 | ||||
| Cost of goods sold | 120,000 | 150,000 | ||||
| Selling expenses | 55,000 | 75,000 | ||||
| Support department expenses: | ||||||
| Purchasing | $70,000 | |||||
| Payroll accounting | 80,000 |
Allocate support department expenses proportional to the sales of each district. Determine the divisional operating income for Districts 1 and 2. For interim calculations, do not round. For all other amounts, round to the nearest whole dollar.
| District 1 Operating Income | $fill in the blank 1 |
| District 2 Operating Income |
$fill in the blank 2
|
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