Question
Operating income for profit center The centralized Data Analytics Department of Drewlink Company has expenses of $340,000. The department has provided a total of 8,000
Operating income for profit center
The centralized Data Analytics Department of Drewlink Company has expenses of $340,000. The department has provided a total of 8,000 hours of service for the period. The Retail Division has used 2,000 hours of data analytics service during the period, and the Commercial Division has used 6,000 hours of data analytics service. Additional data for the two divisions is following below:
| Line Item Description | Retail Division | Commercial Division |
|---|---|---|
| Sales | $2,550,000 | $1,700,000 |
| Cost of goods sold | 1,450,000 | 750,000 |
| Selling expenses | 230,000 | 170,000 |
Determine the divisional operating income for the Retail Division and the Commercial Division. Do not round interim calculations.
| Line Item Description | Retail Division | Commercial Division |
|---|---|---|
| SALES | ? | ? |
| Cost of goods sold | ? | ? |
| Gross profit | ? | ? |
| Selling expenses | ? | ? |
| Operating income before support department allocations | ? | ? |
| Support department allocations | ? | ? |
| Operating income | ? | ? |
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