Required: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 2018 Mutual Fund Division Electronic Brokerage Division $ 1,560,000 $ 1,640,000 762,000 689,600 Investment Banking Division $ 1,570,000 Fee revenue Operating expenses 1,109,200 Income from operations $ 798,000 $ 950,400 460,800 Feedback Check My Work 1. For each division, subtract operating expenses from fee revenue. Learning Objective 4. 2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. Division Profit Margin Investment Turnover ROI Mutual Fund Division ( 51.2 % 0.27 x 51 x % Electronic Brokerage Division 58 % 1.73 x Investment Banking Division 29.4 % 0.491 x 14.4 x % 3. When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokerage Division first. Required: 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. E.F. Lynch Company Divisional Income Statements For the Year Ended June 30, 2018 Mutual Fund Division Electronic Brokerage Division $ 1,560,000 $ 1,640,000 762,000 689,600 Investment Banking Division $ 1,570,000 Fee revenue Operating expenses 1,109,200 Income from operations $ 798,000 $ 950,400 460,800 Feedback Check My Work 1. For each division, subtract operating expenses from fee revenue. Learning Objective 4. 2. Using the DuPont formula for rate of return on investment, compute the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to one decimal place. Division Profit Margin Investment Turnover ROI Mutual Fund Division ( 51.2 % 0.27 x 51 x % Electronic Brokerage Division 58 % 1.73 x Investment Banking Division 29.4 % 0.491 x 14.4 x % 3. When faced with limited funds for expansion, management should consider an expansion of the Electronic Brokerage Division first