Question: Using the data below for the Ace Guitar Company: A Region B Region Sales $639,000 $781,000 Cost of goods sold 242,800 296,800 Selling expenses 153,400

  1. Using the data below for the Ace Guitar Company:

    A Region B Region
    Sales $639,000 $781,000
    Cost of goods sold 242,800 296,800
    Selling expenses 153,400 187,400
    Service department expenses
    Purchasing $238,600
    Payroll accounting 159,000

    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 $
    B Region $

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