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Problem 1 - Income Statement by Division and Allocate Expenses Jensen Company has two divisions; Consumer and Commercial. They have the following information available regarding
Problem 1 - Income Statement by Division and Allocate Expenses Jensen Company has two divisions; Consumer and Commercial. They have the following information available regarding their income statement Consumer 7,430,000 Commercial 6,184,000 Revenues Cost of Goods Sold 4,123,000 3,125,000 1,546,000 Operating Expenses 1,465,000 Another expense is Tech Support, which must be allocated between the two divisions based on the number of computers in each division: Total Tech Support Cost: Computers in Consumer: Computers in Commercial $516,000 375 225 Total Tech Support Cost Total # of Computers Rate per Computer Expense to Consumer Expense to Commercial Total Expense (should match line 1)
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