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 Mountain Bike Division $3,750,000 $3,600,000 Sales 1,763,000 1,584,000 Cost of goods sold 1,387,000 1,332,000 Operating expenses 2,500,000 3,000,000 Invested assets Required: nded December 31, 20Y7, assuming that 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, 20Y7 Road Bike Division Mountain Bike Division Sales Cost of goods sold Gross profit 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. ROI Investment Turnover Profit Margin Division Road Bike Division % Mountain Bike Division mme for esch rn of 170% determine the ces 839 PM minimum accentab A 4) 7/27/2019 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 Profit Margin Investment Turnover ROI Road Bike Division % Mountain Bike Division % % 3. If management desires a minimum acceptable return of 17 % , determine the residual income for each division. If required, use the minus sign to indicate a negative income. Residual Income Division $ Road Bike Division $ Mountain Bike Division Division is the more profitable of the two 4. On the basis of income from operations, the consider the amount of invested assets in divisions. However, income from operations profitable of the Division is the more each division. On the basis of residual income, the two divisions