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, 20Y8 are as follows: Electronic Brokerage Division Investment Banking Division Mutual Fund Division Fee revenue Operating expenses Invested assets The management of E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. Required $2,480,000 1,333,400 9,100,000 $2,600,000 1,232,000 7,600,000 $2,460,000 1,860,000 5,000,000 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 20Y8 Mutual Fund Divislon Electronc Brokerage Divislon Investment Banking Divislon Fee revenue Operating expenses Inccme from operations 2. Using the DuPont formula for rate of returm on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. Division Mutual Fund Division Profit Margin Investment Turnover ROI Electronic Brokerage Divisiorn Investment Banking Division 3. When faced with limited funds for expansion, management should consider an expansion of the 06 Division first