Answer:
$480,000 and $125,000
Explanation:
The computation of the divisional income from Retail division and Commercial division is shown below:
Hardy Corporation
Divisional Income from operations
Particulars Retail Division Commercial Division
Sales $2,150,000 $1,200,000
Less: Cost of goods sold $1,300,000 $800,000
Gross profit $850,000 $400,000
Less:-Selling expenses $150,000 $175,000
Other expenses $220,000 $100,000
($320,000 × 2750 hours ÷ 4,000 hours) (320000 × 1,250 hours ÷ 4000 hours)
Income from operations $480,000 $125,000
We simply deduct the all expenses from the sales so that the divisional income from operations could come
