1. Using the data below for the Ace Guitar Company:

   	A Region		B Region
   Sales	$639,000		$781,000
   Cost of goods sold	242,800		296,800
   Selling expenses	153,400		187,400
   Service department expenses
   Purchasing				$238,600
   Payroll accounting				159,000

   Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.

   A Region	$
   B Region	$