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Problem - The Accounts Payable Department has expenses of $600,000and makes 150,000 payments to the various vendors who provide products and services to the divisions. Division A has operating income of $900,000before service department charges and makes 60,000 payments to vendors. If the Accounts Payable Department is treated as a service department, what is Division A's operating income?
A. $300,000
B. $900,000
C. $660,000
D. $540,000
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