Income from Operations for Profit Center

The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. Additional data for the two divisions is following below:

	Retail Division	Commercial Division
Sales	$945,000	$966,000
Cost of goods sold	504,000	559,300
Selling expenses	156,800	175,000

Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations.

Lee Company
Divisional Income from Operations
	Retail Division	Commercial Division
	$	$
	$	$
	$	$
Income from operations	$	$