Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted:

SalesWinter Sports Division $ 8,900,000 SalesSummer Sports Division 16,400,000 Cost of Goods SoldWinter Sports Division 5,000,000 Cost of Goods SoldSummer Sports Division 9,000,000 Sales ExpenseWinter Sports Division 650,000 Sales ExpenseSummer Sports Division 1,200,000 Administrative ExpenseWinter Sports Division 800,000 Administrative ExpenseSummer Sports Division 1,450,000 Advertising Expense 1,090,000 Transportation Expense 192,000 Accounts Receivable Collection Expense 68,000 Warehouse Expense 1,800,000

The bases to be used in allocating expenses, together with other information, are as follows:

a. Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $715,000.

b. Transportation expenseallocated 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 expenseincurred 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 expenseallocated 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.

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Provide supporting computations for support department allocations.

ANSWER Check Figure: Operating income, Summer Sports Division, $2,790,000