5. The following data are taken from the management accounting reports of ABC Co.:

Div. A Div. B Div. C

Income from operations $2,000,000 $1,400,000 $1,500,000

Total service department charges $1,800,000 $1,050,000 $1,000,000

If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges. What division manger is given the bonus?

The following financial information was summarized from the accounting records of ABC Corporation for the current year ended December 31:

Rails Locomotive Corporate

A B Total

Cost of goods sold $48,000 $31,000

Direct operating expenses $30,000 $20,000

Net sales $110,000 $75,000

Interest expense $2,000

General overhead $18,000

Income tax $4,000

What is the gross profit for the A Division? B Division?

What is the income from operations for the A Division? B Division?

What is the net income for ABC Corporation?