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Use the data below for the Coffee & Cocoa Company. A Region B Region C Region Sales $600,000 $900,000 $300,000 Cost of goods sold 200,000
Use the data below for the Coffee & Cocoa Company.
A Region | B Region | C Region | ||||
Sales | $600,000 | $900,000 | $300,000 | |||
Cost of goods sold | 200,000 | 350,000 | 190,000 | |||
Selling expenses | 150,000 | 275,000 | 100,000 | |||
Support department expenses: | ||||||
Purchasing | 120,000 | |||||
Payroll accounting | 80,000 |
Determine the divisional operating income for the three regions by allocating the support department expenses proportional to the sales of the regions. For interim calculations, do not round. Round final allocation amounts to the nearest whole dollar.
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