Question

Income from operations for Division L is $250,000, total service department charges are $400,000 and operating expenses are $2,750,000. What are the revenues for Division L

Answer 1

the sales revenue is $3,400,000

Step-by-step explanation:

The computation of the revenue is shown below;

Income from operations = Sales revenue - operating expense - total service department charges

$250,000 = Sales revenue - $2,750,000 - $400,000

So, the sales revenue is

= $3,150,000 + $250,000

= $3,400,000

Hence, the sales revenue is $3,400,000