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Burdeno Appliances has, two dlvisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan

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Burdeno Appliances has, two dlvisions, Sales and Financing. Sales is responsible for selling Burdeno's inventory and maintaining inventory for future sale. Financing Division takes loan applications, packages loans into pools, and sells them in the financial markets. it aiso services the loans. Both divisions meet the requirements for segment disclosures under accounting rules. Sales Diylsion had $8 milion in sales last year. Costs, other than those charged by Financing Division, totaled $6 milion. Financing Division earned revenues of $2.5 million from servicing loans and Incrred outside costs of $3 milion. In addition. Financing charged Operations $900,000 for loan-related fees. Sales' manager complained to corporate that Financing was charging 150 percent of the commerclal rate for loan-related fees and that Sales would be better off sending its buyers to an outside lender. Financing's manager replied that aithough commercial rates could be lower, servicing these loans is more difficult, thereby justifying the higher fees. Required: a. What are the reported segment operating profits for each division, Ignoring income taxes and using the $900.000 transfer price for the loan-related fees? b. What are the reported segment operating profits for each division, ignoring income taxes and using a $600,000 (" $900,000 * 150\%) commercial rate as the transfer price for the loan-related fees? Complete this question by entering your answers in the tabs below. What are the reported segment operating profits for each division, ignoring income takes and using the s soo, 000 tranaler price for the loen-rilated fees? Note: Enter your snswers in thousands. a. What are the reported segment operating profits for each division, ignoring income taxes and using the $900,000 transt the loan-related fees? b. What are the reported segment operating profits for each division, ignoring income taxes and using a $600,000 (= $900, 150\%) commerclal rate as the transfer price for the loan-related fees? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What are the reported segment operating profits for each division, lgnoring income taxes and using the 5900,000 transfer price for the loan-related fees? Note: Enter your answers in thousands. o. What are the reported segment operating profits for each division, ignoring income taxes and using the $900,000 trar the loan-related fees? b. What are the reported segment operating profits for each division, ignoring income taxes and using a $600,000(=$90 150% ) commercial rate as the transfer price for the loan-related fees? * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What are the reported segment operating profits for each division, ignoring income taxes and using a $600,000(=$900,000 150% ) commercial rate as the transfer price for the loan-related fees? Note: Enter your answers in thousands

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