1. Prepare condensed divisional income statements for the three divisions, assuming that there were no support department allocations. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 Fee revenue Operating expenses Operating income Feedback Division Mutual Fund Division 1,640,000 800,000 Mutual Fund Division 840,000 Feedback Electronic Brokerage Division 1,710,000 720,000 990,000 Check My Work 1. For each division, subtract operating expenses from fee revenue. Investment Banking Division 1,670,000 1,180,400 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round your answers to one decimal place. Profit Margin 489,600 Investment Turnover 51.2 % Electronic Brokerage Division 58.0 X % 29 X % Investment Banking Division 3. When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokerage ROI 12.6 X % 18 X % 12 X % Division first.

1. Prepare condensed divisional income statements for the three divisons; assuming that there were no support department allocations fontias F Chei My won 1. for each division, subdract opereting expenses from fee reveruie one decimal place. 1. Prepare condensed divisional income statements for the three divisons; assuming that there were no support department allocations fontias F Chei My won 1. for each division, subdract opereting expenses from fee reveruie one decimal place