Divisional income statements with support department allocations

Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:

Line Item Description	Amount
Tech Services Department	$1,080,400
Purchasing Department	332,000
Other corporate administrative expenses	607,000
Total expense	$2,019,400

The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows:

Line Item Description	Tech Services	Purchasing
Consumer Division	450 computers	5,800 purchase orders
Commercial Division	280	10,800
Total	730 computers	16,600 purchase orders

The support department allocations of the Tech Services 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:

Line Item Description	Consumer	Commercial
Revenues	$9,196,400	$7,305,100
Cost of goods sold	5,109,100	3,688,700
Operating expenses	1,803,900	1,826,100

Prepare the divisional income statements for the two divisions. Do not round your interim calculations.