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:

SalesWinter Sports Division	$8,100,000
SalesSummer Sports Division	16,400,000
Cost of Goods SoldWinter Sports Division	5,500,000
Cost of Goods SoldSummer Sports Division	9,500,000
Sales ExpenseWinter Sports Division	640,000
Sales ExpenseSummer Sports Division	1,400,000
Administrative ExpenseWinter Sports Division	720,000
Administrative ExpenseSummer Sports Division	1,470,000
Advertising Expense	1,056,000
Transportation Expense	240,000
Accounts Receivable Collection Expense	201,000
Warehouse Expense	912,000

The bases to be used in allocating expenses, together with other information, are as follows:

Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $326,000; Summer Sports Division, $730,000.

Transportation expensecharged back to divisions at a charge rate of $5.00 per bill of lading: Winter Sports Division, 16,000 bills of lading; Summer Sports Division, 32,000 bills of lading.

Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $3.00 per invoice: Winter Sports Division, 26,000 sales invoices; Summer Sports Division, 41,000 sales invoices.

Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 57,000 square feet; Summer Sports Division, 95,000 square feet.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your intermediate calculations.

Championship Sports Inc.
Divisional Income Statements
For the Year Ended December 31, 20Y9
	Winter Sports Division		Summer Sports Division
Sales
Cost of goods sold
Gross profit
Divisional selling and administrative expenses:
Divisional selling expenses
Divisional administrative expenses
Total divisional selling and administrative expenses
Operating income before support department allocations
Support department allocations:
Advertising expense
Transportation expense
Accounts receivable collection expense
Warehouse expense
Total support department allocations
Operating income

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
	Winter Sports Division		Summer Sports Division		Total
Advertising expense
Transportation rate per bill of lading
Number of bills of lading
Transportation expense
Accounts receivable collection rate
Number of sales invoices
Accounts receivable collection expense
Warehouse rate per sq. ft.
Number of square feet
Warehouse expense