Question

Using the data below for the coffee & cocoa company, a region b region c region sales $600,000 $900,000 $300,000 cost of goods sold 200,000 350,000 190,000 selling expenses 150,000 275,000 100,000 service department expenses: purchasing 120,000 payroll accounting 80,000
a. determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions. for interim calculations, round percentages to four decimal places and amounts to the nearest whole dollar.

Answer 1

Check the attached file for the solution for the problem.