EX 23-7 Divisional income statements with service department charges Obj. 3 comimercial income Yozamba Technology has two divisions, Consumer and Commercial, and two corporate ser- operations vice departments, Tech Support and Purchasing. The corporate expenses for the year ended $1,261,260 December 31, 20Y7, are as follows: Tech Support Department Purchasing Department Other corporate administrative expenses Total corporate expense 516,000 89,600 560,000 $1,165,600 HOW ME HOW EXCEL TEMPLATE The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Purchasing 375 computers 600 computers The service department charges of the Tech Support Department and the Purchasing Consumer Division Commercial Division 1,960 purchase orders 3,640 225 Total 5,600 purchase orders partment are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues expenses for the two divisions are as follows: , cost of goods sold, and operating Revenues Cost of goods sold Operating expenses Consumer $7,430,000 4,123,000 1,465,000 $6,184,000 3,125,000 1,546,000 Prepare the divisional income statements for the two divisions