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I need help with this question. please show your work Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support
I need help with this question. please show your work
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 2016, are as follows: $ 475,600 Tech Support Department Purchasing Department 66,000 Other corporate administrative expenses 580,000 $1,121,600 Total corporate expense The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 320 computers 1,980 purchase orders Commercial Division 260 3,520 Total 580 computers 5,500 purchase orders The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial Revenues $7,440,000 $6,182,000 Cost of goods sold 3,130,000 4,106,000 Operating expenses 1,459,000 1,543,500 Labels and Amount Descriptions Labels Service department charges Amount Descriptions Advertising Department Cost of goods sold Gross profit Income from operations Income from operations before service department charges Operating expenses Purchasing Department Revenues Selling expenses Tech Support Department Prepare the divisional income statements. YOZAMBA TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 2016 Consumer Commercial 1 Division Division $744,000.00 2 Reyenues Cost of goods sold 3 Gross profit Operating expenses Income from operations before service department charges 6 Less service department charges: Total service department charges 10 Income from operations 11 Step by Step Solution
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