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Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December

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Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $510,300 Purchasing Department 60,500 Other corporate administrative expenses 580,000 Total corporate expense $1 . 150.800 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 320 computers 2.000 purchase orders Commercial Division 310 3,500 Total 630 computers 5.500 purchase orders The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, oost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial Revenues $7,430,000 $6,187,000 Cost of goods sold 4,109,000 3,117,500 Operating expenses 1,460,000 1,541,500 Required: Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (.') will ll in where needed. 10 11 Yozamba Technology Divisional Income Statements For the Year Ended December 31, 20W Revenues Cost of goods sold Gross prot Operating expenses Income from operations before service department charges Service department charges: Tech Support Department Purchasing Department Total service department charges Income from operations Consumer Division 1/ $7,430,000.00 4,109,000.00 " 1/ $5,321,000.00 1,450,000.00 " v $1,361,000.00 Score: 821114 Commercial Division I/ $6,187,000.00 5,117,500.00 " $5,069,500.00 " 1,541,500.00 " v $1,528,000.00

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