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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

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 $881,600
Purchasing Department 442,500
Other corporate administrative expenses 569,000
Total corporate expense $1,893,100

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 470 computers 6,200 purchase orders
Commercial Division 290 11,500
Total 760 computers 17,700 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 $8,234,600 $7,230,000
Cost of goods sold 4,574,800 3,650,800
Operating expenses 1,615,200 1,807,300

Prepare the divisional income statements for the two divisions. Do not round your interim calculations.

GRAEL TECHNOLOGY
Divisional Income Statements
For the Year Ended December 31, 20Y7
Consumer Division Commercial Division
$ $
$ $
Income from operations before service department charges $ $
Less service department charges:
$ $
$ $

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