1. Question Content Area

   Using the data below for the Ace Guitar Company:

   	A Region		B Region
   Sales	$598,500		$731,500
   Cost of goods sold	227,400		278,000
   Selling expenses	143,600		175,600
   Service department expenses
   Purchasing				$223,400
   Payroll accounting				149,000

   Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.

   A Region	$fill in the blank 1
   B Region	$fill in the blank 2