Using the data below for the Ace Guitar Company: A Region B Region Sales$521,500 $968,500 Cost of goods sold198,200 368,000 Selling expenses125,200 232,400 Service department expenses Purchasing $250,300Payroll accounting 166,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place.A Region$B Region$

Calculation of proportionate percentage of sales of each region: A Region = [$521,500 / ($521,500 +…

Answered: Using the data below for the Ace Guitar…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the data below for the Ace Guitar Company:

	A Region	B Region
Sales	$521,500	$968,500
Cost of goods sold	198,200	368,000
Selling expenses	125,200	232,400
Service department expenses
Purchasing			$250,300
Payroll accounting			166,900

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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