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 $1,760,000 1,400,000 Sales $1,728,000 Cost of goods sold 1,380,000 175,200 236,800 1,440,000 800,000 Operating expenses Invested assets Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 20Y7 Line Item Description Sales Cost of goods sold Gross profit Operating expenses Operating income Road Bike Mountain Bike Division Division $ $ 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. If required, round your answers to one decimal place. Division Profit Margin Road Bike Division Mountain Bike Division % % Investment Turnover ROI % % 3. If management's minimum acceptable return on investment is 10%, determine the residual income for each division. Road Bike Division Mountain Bike Division 4. On the basis of operating income, the more profitable of the two divisions. Residual Income $ $ Division is the more profitable of the two divisions. However, operating income consider the amount of invested assets in each division. On the basis of residual income, the Division is the