Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $852,000 $568,000 Cost of goods sold 323,800 215,800 Selling expenses 204,500
Using the data below for the Ace Guitar Company:
| A Region | B Region | |||||
| Sales | $852,000 | $568,000 | ||||
| Cost of goods sold | 323,800 | 215,800 | ||||
| Selling expenses | 204,500 | 136,300 | ||||
| Support department expenses: | ||||||
| Purchasing | $238,600 | |||||
| Payroll accounting | 159,000 |
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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