190. Using the data from the Coffee & Cocoa Company,
(a)
determine the divisional income from operations for the three regions by allocating the service department expenses proportional to the sales of the regions.
(b)
determine the increase or decrease to net income if C Region did not operate.
191. Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows:
Division A
Division B
Revenues
$190,000
$125,500
Operating expenses
112,500
92,750
Service department charges
29,500
12,625
Invested assets
225,000
99,000
Prepare condensed income statements for the past year for each division.
Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division.
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