The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows: Road Bike Division Mountain Bike Division Sales $2,040,000 $2,100,000 Cost of goods sold 898,000 987,000 Operating expenses 774,800 777,000 Invested assets 1,700,000 1,500,000 Required: Question Content Area 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 Division Mountain Bike Division Sales $fill in the blank 3b444207307bf9e_1 $fill in the blank 3b444207307bf9e_2 Cost of goods sold fill in the blank 3b444207307bf9e_3 fill in the blank 3b444207307bf9e_4 Gross profit $fill in the blank 3b444207307bf9e_5 $fill in the blank 3b444207307bf9e_6 Operating expenses fill in the blank 3b444207307bf9e_7 fill in the blank 3b444207307bf9e_8 Operating income $fill in the blank 3b444207307bf9e_9 $fill in the blank 3b444207307bf9e_10 Question Content Area 2. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division. If required, round your answers to one decimal place. Division Profit Margin Investment Turnover ROI Road Bike Division fill in the blank 383c7afe400ffa2_1 % fill in the blank 383c7afe400ffa2_2 fill in the blank 383c7afe400ffa2_3 % Mountain Bike Division fill in the blank 383c7afe400ffa2_4 % fill in the blank 383c7afe400ffa2_5 fill in the blank 383c7afe400ffa2_6 % 3. If management desires a minimum acceptable rate of return of 17%, determine the residual income for each division. Residual Income Road Bike Division $fill in the blank 383c7afe400ffa2_7 Mountain Bike Division $fill in the blank 383c7afe400ffa2_8 4. On the basis of operating income, the Division is the more profitable of the two divisions. However, operating income consider the amount of invested assets in each division. On the basis of residual income, the Division is the more profitable of the two divisions.