Profit Center Responsibility Reporting XSport Sporting Goods Co. 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 $34,965,000 SalesSummer Sports Division 38,628,000 Cost of Goods SoldWinter Sports Division 20,979,000 Cost of Goods SoldSummer Sports Division 22,311,000 Sales ExpenseWinter Sports Division 5,994,000 Sales ExpenseSummer Sports Division 5,328,000 Administrative ExpenseWinter Sports Division 3,496,500 Administrative ExpenseSummer Sports Division 3,429,900 Advertising Expense 875,000 Transportation Expense 529,200 Accounts Receivable Collection Expense 253,800 Warehouse Expense 3,330,000 The bases to be used in allocating expenses, together with other essential information, are as follows: Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $411,000; Summer Sports Division, $464,000. Transportation expensecharged back to divisions at a charge rate of $18 per bill of lading: Winter Sports Division, 14,000 bills of lading; Summer Sports Division, 15,400 bills of lading. Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 13,000 sales invoices; Summer Sports Division, 15,200 sales invoices. Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 160,000 square feet; Summer Sports Division, 200,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations. XSport Sporting Goods Co. Divisional Income Statements For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Sales $ 34,965,000 $ 38,628,000 Cost of goods sold 20,979,000 22,311,000 Gross profit $ 13,986,000 $ 16,317,000 Divisional selling and administrative expenses: Divisional selling expenses $ 5,994,000 $ 5,328,000 Divisional administrative expenses 3,496,500 3,429,900 Total divisional selling and administrative expenses $ 9,490,500 $ 8,757,900 Income from operations before service department charges $ 4,495,500 $ 7,559,100 Service department charges: Advertising expense $ 411,000 $ 464,000 Transportation expense 252,000 277,200 Accounts receivable collection expense 117,000 136,800 Warehouse expense 1,480,000 1,850,000 Total service department charges $ 2,260,000 $ 2,728,000 Income from operations $ 2,235,500 $ 4,831,100 Feedback For each division: Sales minus cost of goods sold equals gross profit minus divisional selling and administrative expenses equals income from operations before service department charges. Service department charges are subtracted from income from operations before service department charges. Learning Objective 3. Provide supporting schedules for determining service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. XSport Sporting Goods Co. Service Department Charges For the Year Ended December 31, 20Y9 Winter Sports Division Summer Sports Division Total Advertising expense $ 411,000 $ 464,000. $ 875,000 Transportation rate per bill of lading $ 18 $ 18 Number of bills of lading 14,000 15,400 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 $ $ $