Using the data from the Koko Company, determine the divisional income from operations for the A and B regions. I need to allocate service department expenses proportional to the sales of each region
A Region
B Region
Sales
$600,000
$900,000
Cost of goods sold
200,000
350,000
Selling expenses
150,000
275,000
Service department expenses
Purchasing
$80,000
Payroll accounting
40,000
Solution Preview
Total sales for both regions = 600,000 + 900,000 = 1,500,000
Purchasing expense for each region is as follows:
Region A = (600,000 / ...
Solution Summary
The solution gives detailed steps on determining the divisional income from operations for the A and B regions.
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