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Using the data from the Coffee & Cocoa Company,

(a) Determine the divisional income from operations for the THREE regions by allocating the service department expenses proportional to the sales of the regions

(b) determine the increase or decrease in net income if C Region did not operate.

A Region - B Region - C Region

Sales $600,000 - $900,000 - $300,000

Cost of goods sold $200,000 - $350,000 - $190,000

Selling Expenses $150,000 - $275,000 - $100,000

Service Department expenses

Purchasing - - $120,000

Payroll accounting - - $80,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M939178

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