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French Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the
French Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are indirect costs for the divisions.
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Requirement Allocate the indirect costs of French to each division equally. Calculate division operating income after allocation of headquarter costs. Enter operating losses with minus signs or parentheses.
tableBread,Cake,Doughnuts,,Segment margin,$$$
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