Exercise 14-20 Compute Divisional Income (LO 14-1) Eastern Merchants shows the following information for its...
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Exercise 14-20 Compute Divisional Income (LO 14-1) Eastern Merchants shows the following information for its two divisions for year 1: Eastern Western Sales revenue $ 1,270,000 $ 3,870,000 Cost of sales 804,500 1,935,000 Allocated corporate overhead 76,200 232,200 Other general and administration 165,500 1,107,000 Required: (a) Compute divisional operating income for the two divisions. Ignore taxes. (b) How well have these divisions performed?
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