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 Sales Cost of goods sold $ 4,290,000 1,888,000 1,629,800 3,900,000 Operating expenses Invested assets Required: Mountain Bike Division $ 4,620,000 2,171,000 1,432,600 3,300,000 1. Prepare condensed divisional income statements for the year ended December 31, 2017, assuming that there were no service department charges. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 2017 Sales Cost of goods sold Road Bike Division Mountain Bike Division Gross profit Operating expenses Income from operations S 2. Using the DuPont formula for return on investment, determine the profit margin, investment breves, and rate of return on investment for each division. If required, round your answers to one decimal place. Previous Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 2017 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. Division Road Bike Division Mountain Bike Division Profit Margin Investment Turnover % ROI 1% 3. If management desires a minimum acceptable rate of return of 17%, determine the resulual income for each division. If required, use the minus sign to indicate a negative) income. Road Bike Division Residual Income Mountain Bike Division 4. On the basis of income from operations, the Division is the more profitable of the two divisions. However, income from operations Divaion a the more profitable of the two divisions. consider the amount of invested assets in each division. On the basis of residual income, the Previous Noxt