Betty's Fashions operates retail stores in both downtown and suburban locations. The company has two responsibility...

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Bettys Fashions operates retail stores in both downtown and suburban locations. The company has two responsibility centers: Complete this question by entering your answers in the tabs below. Required A Required B Using the worksheet below, determine

business accounting

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Answer 1

Answer #1

Divisional Income Statement
Sales Revenue	6,200,000
Costs
Advertising	194,000
Cost of goods sold	4,050,000
Divisional Admin Salaries	309,000
Selling costs	599,000
Rent	754,000
Share of corporate admin	-
Total costs	5,906,000
Profit before income tax	294,000
Less: tax	117,600
Net Income	176,400
Allocated costs are not relevant as they will be incurred even if the division is eliminated

The profits will reduce by $176400

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Answer 2

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Betty's Fashions operates retail stores in both downtown and suburban locations. The company has two responsibility...

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