Chapter 23 Homework eBook Show Me How Calculator Divisional Income Statements with Service Department Charges Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 2017, areas follows: Tech Support Department Purchasing Department Other corporate administrative expenses Total corporate expense $516,000 89,500 560,000 $1,165,600 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges division for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Consumer Division Commercial Division Tech Support 375 computers 225 oo comeden Purchasing 1,960 purchase orders 3.640 5,600 pudichase orders Total The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the division Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Revenues Cost of goods sold Operating expenses $7.430,000 4,123,000 Commercial $6,114,000 3,125,000 1,545,000 1,465,000 franche di un dermed Previous Next Check My Won Revenues $7,430,000 $6,184,000 Cost of goods sold 4,123,000 3,125,000 Operating expenses 1,465,000 1,546,000 Prepare the divisional income statements for the two divisions. Round your interim calculations to three decimal places, If required. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2047 Consumer Division Commercial Division Revenues y Cost of goods sold Gross profit y Operating expenses Income from operations before service department charges Service department charges: Tech support department Purchasing department Total service department charges Income from operations Feed Check My Woo Subtract the service department charges for a division from that division's income from operations before such charges to determine income from operations. Learning Objective 3