Road Bike Mountain Bike Division Division Sales $1,728,000 $1,760,000 Cost of goods sold 1,380,000 1,400,000 Operating expenses 175,200 236,800 Invested assets 1,440,000 800,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y7, assuming that there were no support department allocations. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 20Y7 Road Bike Mountain Bike Division Division Line Item Description Sales Cost of goods sold Gross profit Operating expenses Operating income 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each division. If required, round your answers to one decimal place. Division Profit Margin Investment Turnover ROI Road Bike Division Mountain Bike Division 3. If management's minimum acceptable return on investment is 10%, determine the residual income for each division. Residual Income