=+3. If available funds permit the expansion of operations of only one division, which ofthe divi¬

sions would you recommend for expansion, based on parts (1) and (2)? Explain.

A condensed income statement for the Paintball Division of Outdoor Games Inc. for the year ended January 31, 2008, is as follows:

Sales $900,000 Cost of goods sold 500,000 Gross profit $400,000 Operating expenses 274,000 Income from operations $126,000