Profit center responsibility reporting Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Line Item Description Amount SalesWinter Sports Division $27,195,000 SalesSummer Sports Division 30,044,000 Cost of Goods SoldWinter Sports Division 16,317,000 Cost of Goods SoldSummer Sports Division 17,353,000 Sales ExpenseWinter Sports Division 4,662,000 Sales ExpenseSummer Sports Division 4,144,000 Administrative ExpenseWinter Sports Division 2,719,500 Administrative ExpenseSummer Sports Division 2,667,700 Advertising Expense 1,101,000 Transportation Expense 496,400 Accounts Receivable Collection Expense 224,000 Warehouse Expense 2,590,000 The bases to be used in allocating expenses, together with other information, are as follows: Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, $517,000; Summer Sports Division, $584,000. Transportation expenseallocated to divisions at a rate of $17 per bill of lading: Winter Sports Division, 13,900 bills of lading; Summer Sports Division, 15,300 bills of lading. Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of $8 per invoice: Winter Sports Division, 12,900 sales invoices; Summer Sports Division, 15,100 sales invoices. Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 120,000 square feet; Summer Sports Division, 160,000 square feet. Question Content Area Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. Championship Sports Inc. Divisional Income Statements For the Year Ended December 31, 20Y9 Line Item Description Winter Sports Division Summer Sports Division Sales $Sales 27,195,000 $Sales 30,044,000 Cost of goods sold Cost of goods sold 16,317,000 Cost of goods sold 17,353,000 Gross profit $Gross profit 10,878,000 $Gross profit 12,691,000 Divisional selling and administrative expenses: blank blank Divisional selling expenses $Divisional selling expenses $Divisional selling expenses Divisional administrative expenses Divisional administrative expenses Divisional administrative expenses Total divisional selling and administrative expenses $Total divisional selling and administrative expenses $Total divisional selling and administrative expenses Operating income before support department allocations $Operating income before support department allocations $Operating income before support department allocations Support department allocations: Advertising expense $Advertising expense $Advertising expense Transportation expense Transportation expense Transportation expense Accounts receivable collection expense Accounts receivable collection expense Accounts receivable collection expense Warehouse expense Warehouse expense Warehouse expense Total support department allocations $Total support department allocations $Total support department allocations Operating income $Operating income $Operating income Feedback Area Feedback For each division: Sales minus cost of goods sold equals gross profit minus divisional selling and administrative expenses equals operating income before support department allocations. Support department allocations are subtracted from operating income before support department allocations. Question Content Area Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 Line Item Description Winter Sports Division Summer Sports Division Total Advertising expense $Advertising expense $Advertising expense $Advertising expense Transportation rate per bill of lading $Transportation rate per bill of lading $Transportation rate per bill of lading Number of bills of lading Number of bills of lading Number of bills of lading Transportation expense $Transportation expense $Transportation expense $Transportation expense Accounts receivable collection rate $Accounts receivable collection rate $Accounts receivable collection rate Number of sales invoices Number of sales invoices Number of sales invoices Accounts receivable collection expense $Accounts receivable collection expense $Accounts receivable collection expense $Accounts receivable collection expense Warehouse rate per sq. ft. $Warehouse rate per sq. ft. $Warehouse rate per sq. ft. Number of square feet Number of square feet Number of square feet Warehouse expense $Warehouse expense $Warehouse expense $Warehouse expense