Divisional Performance Analysis and Evaluation The vice president of operations of Free Ride Bike Company 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: Road Bike Division 3,960,000 1,742,000 1,465,600 3,300,000 Mountain Bike Division Sales Cost of goods sold Operating expenses Invested assets Required: 4,200,000 1,974,000 1,512,000 2,800,000 1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no service department charges. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 20Y2 Road Bike Division Mountain Bike Division Sales ) C Cost of goods sold Gross profit 3:51 Operating expenses Income from operations 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division. If required, round your answers to one decimal place. Division Road Bike Division Mountain Bike Division Profit Margin Investment Turnover ROI 3. If management desires a minimum acceptable return of 20%, determine the residual income for each division. If required, use the minus sign to indicate a negative income. Division Road Bike Division Mountain Bike Division 4. On the basis of income from operations, the divisions. However, income from operations each division. On the basis of residual income, the two divisions Residual Income Division is the more profitable of the two consider the amount of invested assets in Division is the more profitable of the