Question

The centralized employee travel Department of the goodwill company has expenses of 150,000. that apartment has serviced a total of 2500 travel reservations for the period. The Midwest division has made 1000 reservations during the period and southeast division has made 1500 reservations. how much would each division be charged for travel expenses

Using data from the goodwill company from question 3a above along with the data provided below determine the divisional income from operations for the Midwest and southeast division Southeast division Midwest division Sales 750,000 600,000 cost of goods sold 315,000 450,000 selling expenses 165,000 138,750

Answer 1

Goodwill company

Divisional Income Statements

1		Northeast Division	Pacific Division
2	Sales	750,000	600,000
3	Cost of goods sold	315,000	450,000
4	Gross profit	435,000	150000
5	Selling expense	165,000	138,750
6	Income from operations before service department charges	270,000	155,250
7	service department charges	105,000	16500
8	Income from operations	165,000	138,750

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