Divisional Performance Analysis and Evaluation The vice president of operations of Pavone 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: Required: 1. Prepare condensed divisional income statements for the year ended December 31 , assuming that there were no service department cost allocations. 2. Using the DuPont formula for retum on investment, determine the profit margin, investment turnover, and retum on investment for each division. If required, roun your answers to one decimal place. 3. If management wants a minimum acceptable return of 17 , determine the residuai income for each division, If required, use the minus sign to indicate a negative income. 4. On the basis of income from operations, the is the more profitable of the two divisions. However, inceme from operations consider the amount of invested assets in each division. On the basis of residual income, the is the more profitable of the two divisions