Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 2018, are as follows: Fee revenue Operating expenses Invested assets Mutual Fund Division Electronic Brokerage Division Investment Banking Division $2,180,000 $2,260,000 $2,160,000 1,060,000 8,000,000 953,200 6,600,000 1,526,400 4,400,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required: 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, 2018 Fee revenue Operating expenses Operating income Mutual Fund Electronic Brokerage Investment Banking Division Division Division Required: 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, 2018 Fee revenue Operating expenses Operating income Mutual Electronic Fund Brokerage Division Division Investment Banking Division 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. Division Mutual Fund Division Electronic Brokerage Division Profit Margin Investment Turnover ROI % % % % % % 3. When faced with limited funds for expansion, management should consider an expansion of the Division first. Investment Banking Division