Using the data for Lee Company from Practice Exercise 24-2B along with the data provided below,

Using the data for Lee Company from Practice Exercise 24-2B along with the data provided below, determine the divisional income from operations for the Retail Division and the Commercial Division.

                               Retail Division | Commercial Division

Sales.                               $945,000 | $966,000

Cost of goods sold            504,000 | 559,300

Selling expenses               156,800 | 175,000

Answer:

Retail Commercial 

Division 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 from operations before service 

department charges………………………………… $284,200 $231,700 

Service department charges…………………………    118,800   145,200 

Income from operations……………………………… $165,400 $  86,500