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, 2017, are as follows: Tech Support Department $837,500 Purchasing Department 392,500 Other corporate administrative expenses 529,000 Total corporate expense $1,759,000 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 410 computers 5,500 purchase orders Commercial Division 260 10,200 Total 670 computers 15,700 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 a follows: Consumer Commercial Revenues 57,644,200 56,721,100 Cost of goods sold 4,246,800 3,293,800 Check My Work Previous Next BugmentSession Locator &inprogress=false it Pause eBook Show Me How administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions ar follows: Consumer Commercial Revenues $7,644,200 $5,721,100 Cost of goods sold 4,246,800 3,393,800 Operating expenses 1.499,400 1,680,100 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, 2017 Consumer Division Commercial Division Income from operations before service department charges Less service department charges: I Check My Work Previous