Prepare condensed divisional income statements for the year ended December $31,20$Y$7,$ assuming that there were no support department allocations.

Free Ride Bike Company

Divisional Income Statements

the Year Ended December $31,20$ Y

Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. If required, round your answers to one decimal place.

If management's minimum acceptable return on investment is $10\%,$ determine the residual income for each division.

On the basis of operating income, the $.$