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Using the data below for Ace Guitar Company, determine the divisional operating income for the A and B regions. A Region B Region Sales $600,000

Using the data below for Ace Guitar Company, determine the divisional operating income for the A and B regions.

A Region

B Region

Sales

$600,000

$900,000

Cost of goods sold

200,000

300,000

Selling expenses

150,000

275,000

Support department expenses:
Purchasing

$90,000

Payroll accounting

30,000

Allocate support department expenses proportional to the sales of each region. Round percentage of sales allocations to one decimal place.

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