Question

The centralized employee travel department of Camtro Company has expenses of $528,000. The department has serviced a total of 6,000 travel reservations for the period. The Northeast Division has made 2,400 reservations during the period, and the Pacific Division has made 3,600 reservations.

	Northeast Division	Pacific Division
Sales	$1,155,000	$1,204,000
Cost of goods sold	590,800	658,000
Selling expenses	231,000	252,000

Use the data provided to determine the divisional income from operations for the Northeast and Pacific divisions. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions
Cost of goods sold
Gross profit
Income from operations
Income from operations before service department charges
Operating expenses
Sales
Selling expenses
Service department charges
Supervisory salaries

Use the data provided to determine the divisional income from operations for the Northeast and Pacific divisions. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Camtro Company

Divisional Income Statements

For the Year Ended June 30, 2016

1		Northeast Division	Pacific Division
2
3
4
5
6
7
8

Answer 1