Reference no: EM132523614

Question 1: The accounts payable department has expenses of $600,000 and makes 150,000 payments to the various vendors who provide products and services to the divisions. Division A has operating income of $900,000 before support department allocations and requires 60,000 payments to vendors. If the Accounts Payable department is treated as a support department, what is Division A's operating income?

Option a) $300,000

Option b) $900,000

Option c) $660,000

Option d) $540,000