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 $1,680,000 $1,800,000 739,000 846,000 Cost of goods sold Operating expenses 638,600 666,000 Invested assets 1,400,000 1,200,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 2087, assuming that there were no service department cost allocations. Free Ride Bike Company Divisional Income Statements For the Year Ended December 31, 2017 Road Bike Division Mountain Bike Division Sales Cost of goods sold Gross profit Operating expenses 01 Income from operations 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 is 20%, determine the residual income for each division. If required, use the minus sign to indicate a negative income. Division Residual Income Road Bike Division $ Mountain Bike Division 4. On the basis of income from operations, the Division is the more profitable of the two divisions. However, income from operations 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