Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $816,000 $544,000 Cost of goods sold 310,100 206,700 Selling expenses 195,800

Using the data below for the Ace Guitar Company:

	A Region	B Region
Sales	$816,000	$544,000
Cost of goods sold	310,100	206,700
Selling expenses	195,800	130,600

Support department expenses:
Purchasing			$228,500
Payroll accounting			152,300

Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar.

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

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