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, 20Y7, are as follows:

Tech Support Department	$772,900
Purchasing Department	235,500
Other corporate administrative expenses	434,000
Total corporate expense	$1,442,400

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	360	computers	5,500	purchase orders
Commercial Division	230		10,200
Total	590	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 as follows:

	Consumer		Commercial
Revenues	$6,516,500		$5,264,500
Cost of goods sold	3,620,300		2,658,300
Operating expenses	1,278,200		1,316,000

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, 20Y7
		Consumer Division		Commercial Division
		$fill in the blank 2		$fill in the blank 3
		fill in the blank 5		fill in the blank 6
		$fill in the blank 8		$fill in the blank 9
		fill in the blank 11		fill in the blank 12
Income from operations before service department charges		$fill in the blank 13		$fill in the blank 14
Service department charges:
		$fill in the blank 16		$fill in the blank 17
		fill in the blank 19		fill in the blank 20
Total service department charges		$fill in the blank 21		$fill in the blank 22
		$fill in the blank 24		$fill in the blank 25