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Income from operations for profit center Amount Destions Divisional income Statements The centralized computer og department

Amount Descriptions Amount Descriptions Cost of goods sold Gross profit Income from operations Income from operations before

Divisional Income Statements Instructions Divisional Income Statements Retail Division Commercial Division $966,000.00 559,30

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Answer #1
Les Company
Division Income Statements
For the year ended  
Retail Division Commercial Division
Sales $              945,000 $              966,000
Cost of goods sold $              504,000 $              559,300
Gross profit $              441,000 $              406,700
Selling expenses $              156,800 $              175,000
Income before service department charges $              284,200 $              231,700
Service department charges $              118,800 $              145,200
Income from operations $              165,400 $                86,500
Service department charges
Retail Division (264000/2500*1125) $              118,800
Commercial Division (264000/2500*1375) $              145,200
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