Johnson Company has two divisions, East and West, that operate as profit centers. Sales, cost of goods sold, and selling expenses for the two divisions for the year ended December 31 are as follows:

In addition, the company has two support departments, Legal and Tech Support.
The support department expenses for the year ended December 31 are as follows:

The Legal Department costs are allocated to user divisions based on the number of hours of service, and the Tech Support Department costs are allocated to user divisions based on the number of computers. The usage of service by the two divisions is as follows:

Prepare income statements for the year ended December 31, showing operating income for the two divisions.
Use two column headings: East and West.

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Sales Cost of goods sold Selling expenses East Division $3,000,000 1,650,000 850,000 West Division $8,000,000 4,200,000 1,850,000