The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Use the following data:

	Retail Division	Commercial Division
Sales	$2,150,000	$1,200,000
Cost of goods sold	1,300,000	800,000
Selling expenses	150,000	175,000

Required:

Determine the divisional income from operations for the Retail Division and the Commercial Division. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions

Cost of goods sold

Gross profit

Income from operations

Income from operations before service department charges

Operating expenses

Purchasing

Sales

Selling expenses

Service department charges

Determine the divisional income from operations for the Retail Division and the Commercial Division. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Hardy Company

Divisional Income from Operations

1		Retail Division	Commercial Division
2
3
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5
6
7
8