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Divisional Income Statements with Service Department Charges Power Sports Company has two divisions, Wholesale and Retail, and two corporate service departments, Tech Support and Accounts

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Divisional Income Statements with Service Department Charges Power Sports Company has two divisions, Wholesale and Retail, and two corporate service departments, Tech Support and Accounts Payable. The corporate expenses for the year ended December 31, 2017, are as follows: $1,149,200 Tech Support Department Accounts Payable Department Other corporate administrative expenses de Total corporate expense 258,000 605,000 $2,012,200 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 Accounts Payable Department charge divisions for services, based on the number of checks issued. The usage of service by the two divisions is as follower Tech Support Accounts Payable Wholesale Division 420 computers 5,000 chacie 31200 260 Retail Division 680 computers 17.200 chede Total The service department charges of the Tech Support Department and the Accounts Payable 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: Wholesale Retail Revenues 99,405.900 $7,038.700 Cost of goods sold 5,225,500 3,554,200 Operating expenses 1,845,000 1.759,500 Prepare the divisional income statements for the two divisions POWER SPORTS COMPANY Divisional Income Statements For the Year Ended December 31, 2017 Wholesale Division Rotal Division Revenues $7,038,700 Cost of goods sold Operating expenses $9,405,900 5,225,500 1,845,000 3,554,200 1,759,500 Prepare the divisional income statements for the two divisions. POWER SPORTS COMPANY Divisional Income Statements For the Year Ended December 31, 2017 Wholesale Division Retail Division Operating income before service department charges Less service department charges

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