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 Electronic Investment Mutual Fund Brokerage Banking Division Division Division $760,000 $790,000 $740,000 407,200 2,800,000 334,600 2,300,000 560,000 1,500,000 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 service department cost allocations. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 Fee revenue Operating expenses Income from operations 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 Profit Margin Mutual Fund Division % % Investment Turnover ROI % Electronic Brokerage Division % Investment Banking Division % % 3. When faced with limited funds for expansion, management should consider an expansion of the Division first