Answer:
Retail Division  = $480,000
Commercial Division = $125,000
Explanation:
<u>Divisional income from operations for the Retail Division and the Commercial Division</u>
                                                     Retail Division     Commercial Division
Sales                                               $2,150,000              $1,200,000 
Cost of goods sold                        ($1,300,000)             ($800,000) 
Controllable Contribution                $850,000                 $400,000
Less Expenses
Selling expenses                            ($150,000)                 ($175,000)
Allocated Central Costs                 ($220,000)                ($100,000)
Net Income before tax                    $480,000                  $125,000
Calculations :
Allocation of Central Costs :
Retail Division (2,750/ 4,000 ×  $320,000) = $220,000
Retail Division (1,250/ 4,000 ×  $320,000) = $100,000