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The Following Data Are Taken from the Management Accounting Reports

Question 44

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The following data are taken from the management accounting reports of Dancer Co.:  Div. C  Div. B  Div. A2,700,000$3,700,000$3,600,000 Income from operations 2,200,0002,100,0003,400,000 Total service department charges \begin{array}{llll}\underline{\text { Div. C }}&\underline{ \text { Div. B }} &\underline{ \text { Div. A} } & \\2,700,000 & \$ 3,700,000 & \$ 3,600,000 & \text { Income from operations } \\2,200,000 & 2,100,000 & 3,400,000 & \text { Total service department charges }\end{array} If an incentive bonus is paid to the manager who achieved the highest income from operations 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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