Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:

Tech Support Department	$ 459,200
Purchasing Department	96,900
Other corporate administrative expenses	545,000
Total corporate expense	$1,101,100

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:

	Tech Support	Purchasing
Consumer Division	380 computers	1,900 purchase orders
Commercial Division	180	3,800
Total	560 computers	5,700 purchase orders

The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:

	Consumer	Commercial
Revenues	$7,420,000	$6,192,000
Cost of goods sold	4,133,000	3,115,000
Operating expenses	1,456,000	1,542,000

Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Less or Plus and colons will automatically appear if it is required. Be sure to complete the statement heading.

GRAEL TECHNOLOGY

Divisional Income Statements

1		Consumer Division	Commercial Division
2
3
4
5
6
7
8
9
10	Total service department charges
11	Income from operations