Divisional Performance Analysis and Evaluation The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions Invested assets and condensed income statement data for the past year for each division are as follows: organized as investment centers. Road Blke Division Mountain Bike Divisiorn Sales Cost of goods sold Operating expenses Invested assets Required: $4,400,000 1,936,000 1,672,000 4,000,000 4,620,000 2,171,000 1,478,800 3,300,000 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, 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. Division Road Bike Division Mountain Bike Division 3. If management desires a minimum acceptable rate or return of 18%, determine the residual income for each division. ir required, use the minus Profit Margin Investment Turnover ROI sign to indicate a negative income. Residual Income Road Bike Division Mountain Bike Division 4. On the basis of income from operations, the operationsahe of the two divisions Division is the more profitable of the two divisions Division is the more profitable of the two divisions. However, income from consider the amount of invested assets in each division. On the basis of residual income, the