championship sports inc operates two divisions the winter sports division and the summer sports division

Profit Center Responsibility Reporting Championship Sports Inc. operates two divisions--the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2019, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales-Winter Sports Division Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division Cost of Goods Sold-Summer Sports Division Sales Expense-Winter Sports Division Sales Expense-Summer Sports Division Administrative Expense-Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense $8,900,000 16,400,000 5,000,000 9,000,000 650,000 1,200,000 800,000 1,450,000 1,090,000 192,000 68,000 1,800,000 Warehouse Expense The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $715,000 b. Transportation expense--allocated to divisions at a rate of $4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, allocated to divisions at a rate of $1.00 per invoice: Winter Sports Division, 25,000 sales invoices: Summer Sports Division, 43,000 sales invoices. d. Warehouse expense-allocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 2049 Winter Sports Division Summer Sports Division Sales Cost of goods sold Gross profit Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses $ Operating income before support department allocations Support department allocations: Advertising expense pmm din 01 Transportation expense Accounts receivable collection expense Warehouse expense Total support department allocations Operating income