Division A reported operating income of $975,000 and total support department allocations of $675,000. As a result,

A) net income was $300,000
B) the gross profit was $300,000
C) operating income before support department allocations was $1,650,000
D) consolidated net income was $300,000

Operating Income

Earnings from a company's core business operations, excluding income from investments and after operational expenses have been deducted.

Support Department Allocations

The process of distributing the costs of support departments (such as HR and IT) to producing departments based on predetermined criteria.

Operating Income Before

An earnings before interest and taxes measure that evaluates a company's profit from operations before the impact of financing and tax expenses.