The vice president of operations of Free Ride Bike Company is evaluating the performance of two divisions organized as investment centers. Trivested assets and condensed income statement data for the past year for each division are as follows: Road Bike Division Mountain Bike Division Sales $ 3,080,000 $ 3,280,000 Cost of goods sold 1,355,000 1,542,000 Operating expenses 1,201,400 1,049,200 Invested assets 2,800,000 4,100,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 2017, assuming that there were no service department charges Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 2017 Road Bike Division Mountain Bike Division Sales 2000.000 3.200.000 Cost of goods sold 1.315.000 14 Q10 con prott Operating expenses Income from operations 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 ROI Investment Turnover Profit Margin % % Road Bike Division Mountain Bike Division 3. It management desires a minimum acceptable rate of return of 12%, determine the residual income for each division. If required, use the minussion to indicate a negative income Residual income Road Bike Division Mountain Bike Dision 4. On the basis of income from operations, the Mountain Bike Division is the more profitable of the two division. However, income from operations does not - consider the amount of mested stets in each division. On the basis of edunt income, the Mountain Bike Division is the more profitable of the two divisions Foto