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Divisional Income Statements with Service Department Charges Yozamba 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 Yozamba 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 $1,072,500 Purchasing Department 385,000 Other corporate administrative expenses 627,000 Total corporate expense $2,084,500 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 400 computers 5,400 purchase orders Commercial Division 250 10,000 Total 650 computers 15,400 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 $9,349,400 $7,677,200 Cost of goods sold 5,194,100 3,876,600 Operating expenses 1,833,900 1,919, 100 Prepare the divisional income statements for the two divisions. Do not round your interim calculations, Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division follows: Consumer Commercial Revenues $9,349,400 $7,677,200 5,194,100 3,876,600 > Cost of goods sold 1,833,900 1,919, 100 Operating expenses Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Yozamba Technology Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division Income from operations before service department charges Service department charges: DOO Total service department charges Check My Work

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