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Income for Profit Center The centralized computer technology department of Crutchfield Company has costs of $982,500. The department has provided a total of 13,100 hours
Income for Profit Center The centralized computer technology department of Crutchfield Company has costs of $982,500. The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,900 hours of computer technology service during the period, and the Commercial Division has used 7,200 hours of computer technology service. Additional data for the two divisions is following below: Retail Commercial Division Division Sales $6,320,000 $4,950,000 Cost of goods sold 3,190,000 2,220,000 Selling expenses 502,000 489,000 Determine the divisional income from operations for the Retail Division and the Commercial Division. Crutchfield Company Divisional Income from Operations Retail Division Commercial Division Cost of goods sold $ Gross profit x Income from operations Sales X Service department allocations Selling expenses V x Income from operations
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