Using the data for Kensy Company from Practice Exercise 24-2A along with the data provided below, determine the divisional income

Using the data for Kensy Company from Practice Exercise 24-2A along with the data provided below, determine the divisional income from operations for the Northeast and Pacific divisions.

                       Northeast Division | Pacific Division
Sales                           $1,155,000 | $1,204,000
Cost of goods sold          590,800 |    658,000
Selling expenses             231,000 |    252,000

Answer:


Northeast  Pacific 
Division Division 
Sales……………………………………………………… $1,155,000 $1,204,000 
Cost of goods sold……………………………………    590,800   658,000 
Gross profit…………………………………………… $   564,200 $   546,000 
Selling expenses………………………………………    231,000   252,000 
Income from operations before service 
department charges…………………………………  $   333,200 $   294,000 
Service department charges…………………………    195,750   239,250 
Income from operations……………………………… $   137,450 $  54,750