5. The following data are taken from the management accounting reports of ABC Co.: ...
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5. The following data are taken from the management accounting reports of ABC Co.:
Div. A Div. B Div. C
Income from operations $2,000,000 $1,400,000 $1,500,000
Total service department charges $1,800,000 $1,050,000 $1,000,000
If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges. What division manger is given the bonus?
The following financial information was summarized from the accounting records of ABC Corporation for the current year ended December 31:
Rails Locomotive Corporate
A B Total
Cost of goods sold $48,000 $31,000
Direct operating expenses $30,000 $20,000
Net sales $110,000 $75,000
Interest expense $2,000
General overhead $18,000
Income tax $4,000
What is the gross profit for the A Division? B Division?
What is the income from operations for the A Division? B Division?
What is the net income for ABC Corporation?
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