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Using the data below for the Ace Guitar Company: A Region B Region Sales $728,000 $392,000 Cost of goods sold 276,600 149,000 Selling expenses 174,700

Using the data below for the Ace Guitar Company:

A Region B Region
Sales $728,000 $392,000
Cost of goods sold 276,600 149,000
Selling expenses 174,700 94,100
Support department expenses:
Purchasing $188,200
Payroll accounting 125,400

Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.

A Region Operating Income $
B Region Operating Income $

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