The Accounts Payable Department has expenses of $600,000 and makes 150,000 payments to the var¬ ious vendors who provide products and services to the divisions. Division A has income from opera¬ tions of $900,000, before service department charges, and requires 60,000 payments to vendors. If the Accounts Payable Department is treated as a service department, what is Division A’s income from operations?

A. $300,000 C. $660,000 B. $900,000 D. $540,000 AppendixLO1