PR 24-53 Divisional performance analysis and evaluation Obj. 4 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: Sales Cost of goods sold Operating expenses Invested assets Road Bike Division Mountain Bike Division $1,728,000 $1,760,000 1,380,000 1.400,000 175,200 236,800 1,440,000 800,000 Instructions 1. Prepare condensed divisional income statements for the year ended December 31, 2077. mint that there were no service department charges 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover and return on investment for each division. Round percentages and the investment turnover to one decimal place Answer 3. If management's minimum acceptable return is 10%, determine the residual income for each division Discuss the evaluation of the two divisions, using the performance measures determined in parts () (2) and (3)