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
Cost of goods sold
Service department expenses
Total sales for both regions = 600,000 + 900,000 = 1,500,000
Purchasing expense for each region is as follows:
Region A = (600,000 / ...
The solution gives detailed steps on determining the divisional income from operations for the A and B regions.