1. Divisional Income Statements with Service Department Charges

   Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:

   Tech Support Department	$1,036,800
   Purchasing Department	219,000
   Other corporate administrative expenses	540,000
   Total corporate expense	$1,795,800

   The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:

   	Tech Support		Purchasing
   Consumer Division	500	computers	5,100	purchase orders
   Commercial Division	310		9,500
   Total	810	computers	14,600	purchase orders

   The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:

   	Consumer		Commercial
   Revenues	$8,426,300		$6,249,500
   Cost of goods sold	4,681,300		3,155,700
   Operating expenses	1,652,800		1,562,200

   Prepare the divisional income statements for the two divisions. Do not round your interim calculations.

   GRAEL TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 20Y7

   		Consumer Division		Commercial Division
   Gross profitIncome from operationsOperating expensesRevenues		$- Select -		$- Select -
   Cost of goods soldGross profitIncome from operationsTech support department		- Select -		- Select -
   Gross profitLoss from operationsOperating expensesRevenues		$- Select -		$- Select -
   Income from operationsLoss from operationsOperating expensesPurchasing department		- Select -		- Select -
   Income from operations before service department charges		$fill in the blank 13		$fill in the blank 14
   Less service department charges:
   Cost of goods soldIncome from operationsOperating expensesTech Support department	$- Select -		$- Select -
   Gross profitIncome from operationsOperating expensesPurchasing department	- Select -	- Select -	- Select -	- Select -
   Gross profitIncome from operationsIncome from operations before service department chargesLoss from operations		$- Select -		$- Select -