=+SA 24-5 Evaluating division performance The Truck Division of Estatoe Motors Inc. has been experiencing revenue and profit growth during the years 2008–2010. The divisional income statements are provided below.

Estatoe Motors Inc.

Divisional Income Statements, Truck Division For the Years Ended December 31, 2008–2010 2008 2009 2010 Sales $840,000 $1,200,000 $1,400,000 Cost of goods sold 605,000 856,000 987,000 _________ __________ __________ Gross profit $235,000 $ 344,000 $ 413,000 Operating expenses 109,000 128,000 133,000 _________ __________ __________ Income from operations $126,000 $ 216,000 $ 280,000 _________ _________ __________ __________ __________ __________