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	$31,920,000
SalesSummer Sports Division	35,264,000
Cost of Goods SoldWinter Sports Division	19,152,000
Cost of Goods SoldSummer Sports Division	20,368,000
Sales ExpenseWinter Sports Division	5,472,000
Sales ExpenseSummer Sports Division	4,864,000
Administrative ExpenseWinter Sports Division	3,192,000
Administrative ExpenseSummer Sports Division	3,131,200
Advertising Expense	1,033,000
Transportation Expense	489,600
Accounts Receivable Collection Expense	248,400
Warehouse Expense	3,040,000

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

1. Advertising expenseincurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $485,000; Summer Sports Division, $548,000.
2. Transportation expensecharged back to divisions at a charge rate of $17 per bill of lading: Winter Sports Division, 13,700 bills of lading; Summer Sports Division, 15,100 bills of lading.
3. Accounts receivable collection expenseincurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 12,700 sales invoices; Summer Sports Division, 14,900 sales invoices.
4. Warehouse expensecharged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 140,000 square feet; Summer Sports Division, 180,000 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	$fill in the blank 20a082fc8ff7fe5_1	$fill in the blank 20a082fc8ff7fe5_2
Cost of goods sold	fill in the blank 20a082fc8ff7fe5_3	fill in the blank 20a082fc8ff7fe5_4
Gross profit	$fill in the blank 20a082fc8ff7fe5_5	$fill in the blank 20a082fc8ff7fe5_6
Divisional selling and administrative expenses:
Divisional selling expenses	$fill in the blank 20a082fc8ff7fe5_7	$fill in the blank 20a082fc8ff7fe5_8
Divisional administrative expenses	fill in the blank 20a082fc8ff7fe5_9	fill in the blank 20a082fc8ff7fe5_10
Total divisional selling and administrative expenses	$fill in the blank 20a082fc8ff7fe5_11	$fill in the blank 20a082fc8ff7fe5_12
Income from operations before service department charges	$fill in the blank 20a082fc8ff7fe5_13	$fill in the blank 20a082fc8ff7fe5_14
Service department charges:
Advertising expense	$fill in the blank 20a082fc8ff7fe5_15	$fill in the blank 20a082fc8ff7fe5_16
Transportation expense	fill in the blank 20a082fc8ff7fe5_17	fill in the blank 20a082fc8ff7fe5_18
Accounts receivable collection expense	fill in the blank 20a082fc8ff7fe5_19	fill in the blank 20a082fc8ff7fe5_20
Warehouse expense	fill in the blank 20a082fc8ff7fe5_21	fill in the blank 20a082fc8ff7fe5_22
Total service department charges	$fill in the blank 20a082fc8ff7fe5_23	$fill in the blank 20a082fc8ff7fe5_24
Income from operations	$fill in the blank 20a082fc8ff7fe5_25	$fill in the blank 20a082fc8ff7fe5_26

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	$fill in the blank c1a24ffdd038f8a_1	$fill in the blank c1a24ffdd038f8a_2	$fill in the blank c1a24ffdd038f8a_3
Transportation rate per bill of lading	$fill in the blank c1a24ffdd038f8a_4	$fill in the blank c1a24ffdd038f8a_5
Number of bills of lading	fill in the blank c1a24ffdd038f8a_6	fill in the blank c1a24ffdd038f8a_7
Transportation expense	$fill in the blank c1a24ffdd038f8a_8	$fill in the blank c1a24ffdd038f8a_9	$fill in the blank c1a24ffdd038f8a_10
Accounts receivable collection rate	$fill in the blank c1a24ffdd038f8a_11	$fill in the blank c1a24ffdd038f8a_12
Number of sales invoices	fill in the blank c1a24ffdd038f8a_13	fill in the blank c1a24ffdd038f8a_14
Accounts receivable collection expense	$fill in the blank c1a24ffdd038f8a_15	$fill in the blank c1a24ffdd038f8a_16	$fill in the blank c1a24ffdd038f8a_17
Warehouse rate per sq. ft.	$fill in the blank c1a24ffdd038f8a_18	$fill in the blank c1a24ffdd038f8a_19
Number of square feet	fill in the blank c1a24ffdd038f8a_20	fill in the blank c1a24ffdd038f8a_21
Warehouse expense	$fill in the blank c1a24ffdd038f8a_22	$fill in the blank c1a24ffdd038f8a_23	$fill in the blank c1a24ffdd038f8a_24