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Determining Divisional Income For Company A and B

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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



Cost of goods sold


Selling expenses


Service department expenses

Payroll accounting

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Solution Summary

The solution gives detailed steps on determining the divisional income from operations for the A and B regions.

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Total sales for both regions = 600,000 + 900,000 = 1,500,000

Purchasing expense for each region is as follows:
Region A = (600,000 / ...

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