The centralized employee Travel Department of Wilson Company has expenses of $150,000. The department has serviced a total of 2,500 travel reservations for the period. The Midwest Division has made 1,000 reservations during the period, and the Southeast Division has made 1,500 reservations. How much should each division be charged for travel services?
Using the data for the Wilson Company along with the data provided below, determine the divisional income from operations for the Midwest and Southeast divisions.
|
|
Midwest Division |
Southeast Division |
|
Sales |
$600,000 |
$750,000 |
|
Cost of goods sold |
315,000 |
450,000 |
|
Selling expenses |
138,750 |
165,000 |