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The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not
The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Revenues Cost of goods sold Operating expenses Consumer $6,957,500 3,865,300 1,364,700. Commercial $5,573,000 2,814,100 1,393,100 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2017 Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Service department charges: Tech support department Purchasing department Total service department charges Income from operations Consumer Division Commercial Division 0000 0000 000 Previous Next
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