Allocating Operating Expense-Miles Driven Mercado Lopez owns a furniture store that offers free delivery of merchandise delivered within the local area. Mileage records for the three sales departments are as follows: Department 1: Department 2: Department 3: 36,000 miles 48,000 miles 16,000 miles The cost of using the truck for the last year, including depreciation, was $16,000. Allocate the cost of the truck among the three departments on the basis of miles driven. Truck Expense Department 1 Department 2 Department 3 Total Computing Operating Income The sales, cost of goods sold, and total operating expenses of departments A and B of Ash Company are as follows: Sales Dept. A Dept. B $200,000 $160,000 146,000 115,000 31,000 22,000 Cost of goods sold Total operating expenses Compute the departmental operating income for each department. Operating income Dept. A A Dept. B