Question
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
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 |
---|---|---|
CashCost of goods soldOperating incomeSalesSelling expenses | $- Select - | $- Select - |
CashCost of goods soldGross profitOperating incomeSupport department allocations | - Select - | - Select - |
CashDivisional revenueGross profitOperating incomeSales | $- Select - | $- Select - |
CashCost of goods soldSalesSelling expensesSupport department allocations | - Select - | - Select - |
CashGross profitOperating income before support department allocationsSalesSupport department allocations | $- Select - | $- Select - |
CashCost of goods soldSalesSelling expensesSupport department allocations | - Select - | - Select - |
Operating income | $Operating income | $Operating income |
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