Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $549,000 $671,000 Cost of goods sold 208,600 255,000 Selling expenses 131,800

Using the data below for the Ace Guitar Company:

A Region B Region
Sales $549,000 $671,000
Cost of goods sold 208,600 255,000
Selling expenses 131,800 161,000
Support department expenses:
Purchasing $205,000
Payroll accounting 136,600

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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