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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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