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i need help please Version A Chapter 22 Problem (worth 19 points) Denison Co. operates two regional sales locations (profit centers)--the Southeast and Southwest regions.
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Version A Chapter 22 Problem (worth 19 points) Denison Co. operates two regional sales locations (profit centers)--the Southeast and Southwest regions. Information about these regions follows. Southeast Region $156,800 47,040 Southwest Region $88,200 26,460 Sales Cost of goods sold Direct expenses: Selling expenses Administrative expenses 12,000 7,500 6,475 3,750 The company also incurred the following service department costs: Legal Department $25,000 Payroll Department 15,000 Purchasing Department 60,000 Warehouse Department 45,000 Service department charges are allocated as follows: Purchasing on the basis of sales, Legal and Payroll on the basis of the number of employees, and Warehouse on the basis of square footage. Additional information about the regional locations follows: Number of employees Square footage occupied Southeast Region 105 12,328 Southwest Region 35 6,072 Prepare departmental contribution statements for the Southeast and Southwest sales regions (template provided). If necessary, rou to the nearest whole dollar. Page 10 Version A Denison Co. Departmental Income Statements with Contribution to Overhead For Year Ended December 31, 20XX Southeast Region Southwest Region Sales Cost of goods sold Gross profit Direct expenses Total direct expenses Departmental contribution to overhead Service department charges Total service department charges Operating income (loss) Bonus question worth two (2) points: Based upon your departmental income statement, should the Southeast Region be eliminated? Why or why not? Page 11 Step by Step Solution
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