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The Following Data Are Taken from the Management Accounting Reports

Question 47

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The following data are taken from the management accounting reports of Dancer Co.:  Div. A  Div. B  Div. C  Operating income $1,800,000$1,350,000$1,900,000 Total service department charges 1,700,0001,050,0001,100,000\begin{array} { l r r r } & \text { Div. A } & \text { Div. B } & \text { Div. C } \\\text { Operating income } & \$ 1,800,000 & \$ 1,350,000 & \$ 1,900,000 \\\text { Total service department charges } & 1,700,000 & 1,050,000 & 1,100,000\end{array} ? If an incentive bonus is paid to the manager who achieved the highest operating income before service department charges, it follows that


A) division A's manager is given the bonus.
B) division B's manager is given the bonus.
C) division C's manager is given the bonus.
D) the managers of Divisions B and C divide the bonus.

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