Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $760,500 $409,500 Cost of goods sold 289,000 155,600 Selling expenses 182,500

Using the data below for the Ace Guitar Company:

	A Region	B Region
Sales	$760,500	$409,500
Cost of goods sold	289,000	155,600
Selling expenses	182,500	98,300

Support department expenses:
Purchasing			$196,600
Payroll accounting			131,000

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

B region Operating income

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