XYZ Co, has three regional divisions organized as profit centers. Divisional performance is evaluated using Income from Operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance from the most recent period: Revenues - Fruit Revenues-Dairy Revenues - Veggies Operating Expenses - Fruit Operating Expenses - Dairy Operating Expenses - Veggies SGA Expenses - Customer Support SGA Expenses - Legal $ 895,000 1,036,000 1,806,000 562,000 624,860 1,159,700 430,000 295,000 XYZ operates two service departments: Customer Support and Legal. The Customer Support Department provides support to each division and believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for the divisions and believes that the number of hours billed is an activity base for this work. The following additional information has been gathered: Number of Customer Contacts Number of Hours Billed Fruit 6,000 1,360 Dairy 6,000 2,150 Veggies 8,000 1,990 Total 20,000 5,500 Calculations 1. Determine the Service Department Charges to be allocated to each Division. Legal Customer Support Total Expenses Total Customer Contacts / Hours Billed W axa i Ducal's Application Rate We lorows it yoursel's Per customer e How EW Customer Contacts Hours Billed Fruit Application Rate Total SGA Allocation Dairy Application Rate Total SGA Allocation Veggies Application Rate Total SGA Allocation 2. Prepare Divisional Income Statements. Fruit Dairy Veggies Revenues Operating Expenses Income From Operations before Service Deparment Charges Less: Service Charges: Customer Support Legal Total Service Charges Income from Operations 3. Evaluate each Division's perfomance, using the metric described in the Instructions. Fruit Dairy Veggies