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 Investment Banking Mutual Fund Division Division Division Fee revenue $1,310,000 $1,370,000 $1,330,000 Operating 705.200 578,000 1,006,000 expenses Invested assets 4,000,000 4,800,000 2,700,000 f E.F. Lynch Company is evaluating each division as a basis for planning a future expansion of operations. The management Required: 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 Division Investment Banking Division Electronic Brokerage Division Fee revenue Operating expenses Income from operations 2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate return on investment for each division. Round your answers to one decimal place. Division Profit Margin ROI Investment Turnover Mutual Fund Division Electronic Brokerage Division Investment Banking Division 0% 3. When faced with limited funds for expansion, management should consider an expansion of the Division first