Question: Using the data from the Koko Company, determine the divisional income from operations for the A and B regions. A Region B Region Sales $600,000
Using the data from the Koko Company, determine the divisional income from operations for the A and B regions.
| A Region | B Region | ||
| Sales | $600,000 | $900,000 | |
| Cost of goods sold | 200,000 | 350,000 | |
| Selling expenses | 150,000 | 275,000 | |
| Service department expenses | |||
| Purchasing | $80,000 | ||
| Payroll accounting | 40,000 | ||
Allocate service department expenses proportional to the sales of each region.
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