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, 2017, are as follows: $682,000 Tech Services Department Purchasing Department Other corporate administrative expenses 400,000 465,000 Total expense $1,547,000 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: Tech Services Consumer Division 380 computers 240 Purchasing 5,600 purchase orders 10,400 Commercial Division Total 620 computers 16,000 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: Consumer Commercial Revenues $6,562,400 3,645,800 $6,072,500 3,066,300 Cost of goods sold CUIDUCI LUNCILIU Revenues $6,562,400 $6,072,500 3,066,300 Cost of goods sold 3,645,800 Operating expenses 1,287,200 1,518,000 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division Revenues Cost of goods sold Gross profit Operating expenses $ Operating income before support department allocations Support department allocations: Tech service department Purchasing department Total support department allocations Operating income