Question

Using the data below for the Ace Guitar Company: A Region B Region Sales $852,000 $568,000...

Using the data below for the Ace Guitar Company:

A Region B Region
Sales $852,000 $568,000
Cost of goods sold 323,800 215,800
Selling expenses 204,500 136,300
Support department expenses:
Purchasing $238,600
Payroll accounting 159,000

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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