Question

Division A reported income from operations of $975,000 and total service department charges of $675,000. As a result, a.consolidated net income was $300,000 b.the gross profit margin was $300,000 c.income from operations before service department charges was $1,650,000 d.net income was $300,000

Answer 1

Answer:

c.income from operations before service department charges was $1,650,000

Explanation:

We can see from the information in the question, that income from operations and service department charges sum a total of $1,650,000

Gross income before service department charges = $975,000 + $675,000

                                                                                    = $1,650,000