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Question - Using the data below for the Ace Guitar Company:
A Region
B Region
Sales
$500,000
$900,000
Cost of goods sold
200,000
300,000
Selling expenses
150,000
275,000
Service department expenses:
Purchasing
$90,000
Payroll accounting
30,000
Required - 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.
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