=+PR 24-2B Profit center responsibility reporting obj. 3

✔ 1. Income from operations, South Region, $399,000 Performance Financial Services Inc. is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 2010, are as follows:

Electronic Retail Brokerage Investment Division Division Banking Division Fee revenue $2,500,000 $1,400,000 $3,250,000 Operating expenses 1,600,000 1,302,000 2,600,000 Invested assets 5,000,000 350,000 4,062,500 The management of Performance Financial Services Inc. is evaluating each division as a basis for planning a future expansion of operations.

Instructions 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges.