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What is Division A operating income

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Problem - 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?

a. $300,000

b. $900,000

c. $660,000

d. $540,000

Reference no: EM132717654

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