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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