Divisional performance analysis and evaluation The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Line Item Description Business Division Consumer Division Sales $42,800,000 $56,000,000 Cost of goods sold 23,500,000 30,500,000 Operating expenses 11,424,800 14,300,000 Invested assets 34,240,000 70,000,000 Required: Question Content Area 1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations. Recycling Industries Divisional Income Statements For the Year Ended December 31, 20Y8 Line Item Description Business Division Consumer Division Sales $Sales $Sales Cost of goods sold Cost of goods sold Cost of goods sold Gross profit $Gross profit $Gross profit Operating expenses Operating expenses Operating expenses Operating income $Operating income $Operating income Feedback Area Feedback 1. Remember operating income does not reflect the amount of assets invested in each division. Question Content Area 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. Round percentages to one decimal place and the investment turnover to two decimal places. Division Profit Margin Investment Turnover ROI Business Division fill in the blank 1 of 6 % fill in the blank 2 of 6 fill in the blank 3 of 6 23 % Consumer Division fill in the blank 4 of 6 % fill in the blank 5 of 6 fill in the blank 6 of 6 16 % 3. If management desires a minimum acceptable return on investment of 10%, determine the residual income for each division.