Income from operations of the Pierce Automobile Division is $2,225,000. If income from operations before service department charges is $3,250,000,
A) operating expenses are $1,025,000
B) total service department charges are $1,025,000
C) noncontrollable charges are $1,025,000
D) direct manufacturing charges are $1,025,000

Question

Quizplus · Accepted Answer

The difference between income from operations before service department charges and income from operations of the Pierce Automobile Division is the total service department charges, which is $1,025,000.

Income from Operations of the Pierce Automobile Division Is $2,225,000