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, 2048, are as follows: Electronic Mutual Fund Brokerage Division Investment Banking Division Division Fee revenue $2,350,000 $2,430,000 $2,360,000 Operating expenses 1,146,000 896,400 1,668,800 Invested assets 8,600,000 7,100,000 4,800,000 The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion 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, 20Y8 Mutual Electronic Investment Fund Brokerage Banking Division Division Division Fee revenue Operating expenses Operating income 2. Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each di Round your answers to one decimal place. Division Profit Margin Investment Turnover ROI % % Mutual Fund Division % Electronic Brokerage Division % % % Investment Banking Division 3. When faced with limited funds for expansion, management should consider an expansion of the Division first