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Divisional Income Statements with Service Department Charges Gral Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing The

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Divisional Income Statements with Service Department Charges Gral Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing The corporate expenses for the year ended December 3L 2017, are as follows: Tech Support Department $061,600 Purchasing Department 435,000 Other corporate administrative expenses 558,000 Total corporate expense 31,854,800 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 service by the two divisions is as follows Tech Support Purchasing Consumer Division 330 computers 5,100 purchase orders Commercial Division 240 11,300 Total 620 computers 19,400 purchase orders The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions Corporate adminstrative expenses are not considered controllable by the division. The revers, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial Revenues 50,005.100 37,139,500 Cost of goods sold 1447.300 3,605,100 Operating expenses 1,570,200 1.784 700 Prepare the divisional income statements for the two divisions. Do not and your interim calculations GRAEL TECHNOLOGY Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division Revenues Cost of goods sold Gross profit Operating expenses 00 Income from operation before service department chacons Consumer Commercial Revenues $8,005,100 $7,139,500 Cost of goods sold 4,447,300 3,605,100 Operating expenses 1,570,200 1,784,700 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 Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Less service department charges Commercial Division OD ol

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