Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $500,000 $900,000 Cost of goods sold 200,000 300,000 Selling expenses 150,000

Using the data below for the Ace Guitar Company:

A Region B Region
Sales $500,000 $900,000
Cost of goods sold 200,000 300,000
Selling expenses 150,000 275,000
Service department expenses:
Purchasing $90,000
Payroll accounting 30,000

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 Income
B Region Income

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